You don't seem to be aware of what is under discussion here. You just raised a huge strawman.
Websites are not receiving your biometrics in this context, and your biometrics would be meaningless to the website if captured and somehow provided.
Your biometric signature is stored solely inside the Secure Enclave in the Apple device.
If and only if the Secure Enclave recognizes you via your biometrics will the Enclave uses a non-transferrable key stored only in the Enclave to attest to the website that you are the user "JoeAltmaier".
- The key is secret.
- The key is kept in only one place.
- The key can easily be discarded and a new one made.
- The key is never given to anything outside of the Enclave, so... I'm not sure how it could be traced to you, besides the whole fact that it is being used to authenticate you, which is necessary.
Sounds pretty acceptable to me as a password. The usability issue here is that a website needs to be able to accept a different password from each device you own, since the password is non-transferrable, and you might accidentally drop your iPhone to the bottom of the ocean.
Good news: FIDO2 is an entire standard built around this concept, originally intended for use on YubiKeys and similar FIDO2-compliant USB sticks.
Apple is building an implementation of FIDO2 that uses the iPhone that's already in the person's hand.
If the Secure Enclave is compromised (which does happen sometimes), then Bad Things could happen... but that's also what happens when a password manager tool is compromised.