Earlier quoted context omitted.
Lets take a concrete example, suppose you have AWS root account credentials. Are you going to assign them to one individual identity or as a company you would keep them accessible to a group of admins. Its going to be the second choice almost for every big company which makes them shared credentials. Coming to team password managers at high level, its a shared location guarded behind closed doors (probably encryption…
We deleted the root credentials efter initial setup where we added mgmt iam accounts used by our automation. If we ever needed them we used the recovery process. All users and services use temporary credentials.
Considering thats not the case, what you just did is move the goal post to a account recovery process. Question becomes who has ability to recover the account, in case its tied with email then most likely it has to be a shared email box. What you have now is a much more fragile system in case of custom domains, where whoever is controlling the email domain (DNS management capability) can take over the AWS accounts.