Any two qubit Controlled-U gate is not decomposable as $A\otimes B$ in general. The whole point is that a conditional operator has a non-local nature and it gives rise to non-trivial correlations when operated on a state.
The Physics behind is that; imagine a Controlled operation which can be factored as $A\otimes B$, and the sub-systems (or the two qubits) are separated non-locally in space. then the only way to perform a controlled conditional operation is to measure the state of a first qubit, convey the outcome classically to the second qubit and apply the desired unitary on the second qubit, and finally re-initialize the first qubit. But now note that this is NOT actually a 'true' controlled gate because it cannot work for an arbitrary control qubit.
Hence, the actual nature of a conditional gate is non-local, which essentially implies that it cannot be factored as $A\otimes B$ over the sub-spaces. The intuition can be taken as the operation reads system $A$ and simultaneously changes system $B$ based on the state of system $A$. This is strictly non-local in nature. Physically how it is implemented in experiments is most often by a single exchange of quanta between the states, which is triggered by the state of one sub-system. Hence, this gives rise to entanglement between the sub-systems. It is most often called the 'entanglement generator'.
Also, you can think of $\operatorname{CNOT}$ gate to be the most simplified two-qubit gate which can generate the class of two-qubit non-local gates when combined with few other gates. This is already proved by the Universality of single-qubit gates and the $\operatorname{CNOT}$ gate.
About the Toffoli gate, the most obvious way to implement it (after taking in mind the universality) is to decompose it in parts of $\operatorname{CNOT}$ gates and single qubit gates. This is what is done. And because reversibility is a must requirement for a quantum operation, you cannot use any analogous irreversible gate like the $\operatorname{AND}$ gate in quantum circuits. To perform the $\operatorname{AND}$ analogous operation as you pointed out, this is further broken up in parts of the single qubit and $\operatorname{CNOT}$ gates (to ensure the reversibility and unitarity).
PS: One essential reason why this decomposition is done because in experiments all we can implement are these single qubit and $\operatorname{CNOT}$ gates only. Any such protocol must be decomposed in these gates to cope up with some experimental implementation. And these are intuitive as well, rather than using multi-qubit gates which are nothing but a series of the single qubit gates and $\operatorname{CNOT}$s.