Passkeys is a new FIDO standard that will let the private keystore be backed by the cloud. It was added to WebAuthn fairly recently. Having keys tied to specific physical devices was a terrible & frustratingly limited scheme that never had any hope. Now that there's something a little bit looser, there's some small hope WebAuthn starts to become interesting & viable. https://developer.chrome.com/blog/webauthn-conditi…
The entire point of two-factor authentication is to have, well, two factors: something you know and something you have. Using the PC itself as token was already problematic enough as it has a massive code base and runs all sorts of untrusted code so it is likely to be compromised at some point - but at least that was somewhat excusable due to convenience making it accessible to way more people. But getting rid of the rest of the credential and solely relying on the OS is just insanity.