Earlier quoted context omitted.
If passkeys become defined as resident keys, is this still true? And if this is acceptable, honestly, do we need a new standard? Password managers exist today. Such that I already do what you are suggesting here with passwords. Does it really become much more secure by the move to passkeys?
Passkeys are for the people that don't even use password managers outside of what Apple or chrome provides by default if at all. Passkeys are trying to eliminate those ad hoc solutions by providing a different system. The transition will be slow and messy requiring most people to use passkeys and passwords (and maybe password managers) for a while.
I mean, I get the obvious ways that a challenge system is better than a bearer token. But I feel a ton is lost as soon as you move to the exportable keys.
Love to see an exploration on these topics. I confess I have not been following them much, lately.