The hotkey + switching character approach works brilliantly for me when ‘clicking’ using the keyboard (first discovered this way of navigating using Vimium in Chrome).
My eyes are already on the thing I want to click , I subconsciously hit the hotkey and then automatically hit the letter that appears over the thing that I’m looking at.
This is an example of the Vimium overlay. It might look a bit messy but it’s on the screen for less than a second and works really well in practice.