Earlier quoted context omitted.
The problems of Passkeys are more nuanced than just losing access when a device is lost (which actually doesn't need to happen depending on your setup). The biggest problem are attestations, which let services block users who use tools that give them more freedom. Passkeys, or more generally challenge-response protocols, could easily have been an amazing replacement for passwords and a win-win for everyone. Unfortuna…
Do you have some examples where people actually require attestation in 3rd party facing systems? Or is this purely "But in theory..." and you've dismissed all the very real problems with the alternatives because you're scared of a theoretical problem ? I always reject attestation requests and I don't recall ever having been refused, so if this was a real problem it seems like I ought to have noticed by now.
The protocol normally allows you to omit the attestation, but they worked around an extra call after a successful registration flow that sends you to an error page if your FIDO2 passkey isn't from one of these large approved vendors: https://learn.microsoft.com/en-us/entra/identity/authenticat...
I found out by trying to prototype my own FIDO2 passkey, and losing my mind trying to understand why successful flow that worked fine on other websites failed with Microsoft. It turns out, you are not allowed to do that.