I think this is the biggest reason why these category of discussion happens in the first place, there is a gap between what technology is good for, whats its ideal for and then the products motivation to push it on to the user assuming it would give a good name to the company.

Passkeys are one of the few protocols that supports against phishing (Accidentally giving away your credential to some rough site) so it has its benefits and more so for enterprise users.

It becomes challenging and is ill suited when its pushed to general public. A middle ground could have been to give it as an option to user instead of forcing it on the user. For some reason its not cool enough.

From a company's perspective

  - Authentication is a friction and the discoverable credential (where you just click on username button and log in) reduces the friction for user, making it easier for user to make that purchase decision

  - Account take over attempts (ATOs) do take a dip, saves quite a lot of resources on customer support side for the company