They are DIP switches that can be accessed after the cover is removed. They're very small but can be readily actuated with a pointy object.You have to remove the back cover to access them.
Mine arrived this week, but I won't be home until Tuesday!
I'd say that's on the edge of what most people mean when they say "hardware switch". What they really mean is a "mechanical switch", but nonetheless a software operated hardware switch can theoretically be operated by malicious software. I'd actually argue both qualify as physical switches since they're discrete components on the board, but that definition becomes a bit fuzzy as you go down to the silicon level (would an exclusively externally gated transistor count as a physical switch?). It gets philosophical at some point.Hardware switch doesn't mean there has to be a physical switch on the device.
A hardware switch can also be a software controlled switch (as we have on the Pyra for the modem) which cuts the power to a component.
The idea is to make sure that stuff with closed firmwares (Wifi, Modems, etc.) don't do anything they shouldn't, and that can be done by cutting the power.
A software controlled switch on the board does its job