The physical card looks amazingly well designed, it's a shame they only offer 1% back on it (I assume physical card transactions would have higher theft rates than a fingerprint-verified Apple Pay transaction).
Actually, one of the justifications for the US doing chip and signature rather than chip and PIN is the supposedly low lost/stolen fraud rate (which is what stuff like PIN and biometrics would protect against). The lower cash back rate for non-Apple Pay transactions is likely more to encourage Apple Pay use.