"You lost me the moment you mentioned iCloud". At least that's the way the majority of people I know react to this line of thinking. The "cloud" is still mysterious and complicated to a good number of people. Passwords are easy to understand.

Most Apple users are used to using their account for everything - that’s how they buy apps, use things like music or photos, etc. and, of course, passwords. Switching to passkeys doesn’t change that much other than being a bit faster.

Most people use the cloud without even knowing it. If you instead say it’s seamlessly replicated among all your devices, that is a good enough explanation and conveys the benefits to customers.

Yeah that's right! If you simply say that this syncs to all my devices, it papers over, or abstracts if you will, the complexity of: secure enclaves/TPMs, symmetric sync keys wrapping asymmetrically encrypted passkeys, resident keys that support backup, keys that do NOT support backup, how biometrics are used, etc. etc.

With a password, I can write it down on a piece of paper and put it in my safe.

One of these systems is not like the other.