Yes, a bit of a mess. As the only practical way for most to use is with a password manager. So essentially, all your accounts still have a real password, just you enter that into your password manager app. So if your device is every compromised and someone has your master password then you are screwed.

And of course, passkeys on most all sites don't really improve security since someone can just choose to login with user/pass instead since presumably very few sites allow you to have just passkey.

Also if you use a password manager you may get locked into using that platform. Or ideally using a third party one but then having to pay a subscription, or using an open source option that is not ideal for the average person.

If one uses a passkey as intended and without a password manager and the site truly only supports logging in via your passkey, for all the touted benefits of passkeys, that would be a nightmare if a person loses access to their device, etc.