The magic of password is that you can write them to paper or keep them in your mind. No interoperability issue if suddenly having to use it temporarily or permanently with another device, like if you lose your phone. And you can also pretend they don't exist and no one can prove otherwise. Also if you don't use a password manager, no one (hacker or else) can extract it from your head like it can be forced from your devices.
That password is Hello123! for most people and that's why people get “hacked”. Great that you're one of the dozen or so people who can keep hundreds of passwords in your memory palace for several decades, but that's not feasible for us mortals.
Good passwords are hard because password booklets get lost, or aren't nearby when accounts are created, and people are terrible at remembering hundreds of passwords. Or even ten passwords, as I've found out working helpdesk.
If everyone used passwords safely, we wouldn't need 2FA on all that many services. Unfortunately, credential stuffing remains super effective.
I'm not saying passkeys are the perfect solution here, but pretending passwords are fine as-is is just burying your head into the sand.
