Then please enlighten me what is your future security scenario with this device because you said that you could not protect the internal firmware?
I can't, at least not the degree required. My understanding is that the Atmel device IS secure, holds the private keys and implements the HMAC. All our device would need to do it pass the authentication message +key number from the host to the Atmel device, and then read the the message digest back and pass it to the host. This means no secure comms are required between our micro and the Atmel device, and no storage of private is required within out micro.
Are you enlightened, or have I misunderstood the operation of the Atmel device?
Just for context, this security isn't going to have any significant consequences in the unlikely event that someone feels making the effort of breaking it which is why I think it's simply unnecessary (as does everyone working on the project). As always however, the customer is always right, especially when they're wrong.