The main difference is that a hardware wallet should always keep the private key separated from the internet. Therefore I'd nowadays say use a hardware wallet or paper wallet for long term savings and/or larger sums. A software wallet can be more practical for spending smaller amounts, just like your purse. A separate GOS profile would still be your safest place for a software wallet in my opinion.
As for which hardware wallet brand, I'd recommend Trezor (Safe 3) and BitBox02. They have good track records regarding security and keeping user information safe, have security hardware chips, offer two firmware versions (one BTC only for added security) and come with Open Source code. I do not recommend Ledger as they have been breached at least twice (causing mail and home address of their customers being leaked) and now offer "Ledger Recover", which means they created a way to access your private key and store it "safely" online for recovery which is a big red flag for me given their security track record. Also they are closed source.
Please know I'm no GOS dev or crypto expert, just a user with some enthusiasm and research, but I can be wrong and you should not trust me.
I personally opted for the Trezor Safe 3, as it works on GOS without Sandboxed Play Services via their web suite in Vanadium (both Trezor and BitBox apps need Google Services too work). Trezor also supports XMR (but not directly). Depending on your needs, supported coins and the convenience while accessing the coins you might choose BitBox over Trezor though. Whatever you choose, order your wallet directly from the project website to avoid tinkering. Use a remote postbox or forwarding service if you want added privacy.