[Doc Wu]

Or is this history repeating itself?

Maybe I'm older then most of you, but I remember cars having a big silver (chrome) button on the dash to push when you wanted to run the starter. It was considered modern because it was better than getting out and turning the crank at the front of the engine.

There was also a switch, later a key switch for security, to turn on/off the electrical system.

The present-day ignition switch on the steering column came about as a mechanical interlock to prevent turning the steering wheel unless the key was inserted. It was a crude theft-prevention system that was easily defeated with a large screwdriver or dent-puller.

All the electronics in cars now makes the mechanical aspect irrelevant. You can no longer rip a hunk of wires from under the dash and twist the ends together to steal a car, even if the movies say you can. You can't steer a car very well without the engine running either, so that interlock is irrelevant. And it would be trivial to interlock the transmission to the electrical system and make it impossible to drive without the systems permission.

Keys with chips, or just a chip on a piece you keep in your pocket is all that is needed now. For that matter, they could use NFC or Bluetooth and let you authenticate your permission to drive with your smartphone. It already ties into everything else, why not?

Stealing a car has gone from splicing wires to hacking.

Keys may be nearing obsolescence, but they still give the owner a good feeling. They want to know their expensive car is locked down. And what do you use to get into the car when the battery dies?