> even though it's nearly akin to "use one password for everything"
It's not at all akin to that.
Firstly, every respectable password manager requires multi-factor authentication to log in to. Someone finding out the password to your manager is almost never sufficient. They would probably need to find it out as well as gain physical access to a device of yours which has the manager installed.
Secondly, the whole issue of "use one password for everything" is that if one site gets hacked and they store passwords insecurely (or, indeed, if the people who run the site are themselves malicious), then someone can use that same password to access all of your other accounts. So you have to trust the security of every single site you make an account with.
Using a password manager doesn't have that problem, since each site is being provided with a different password. So then you don't have to trust any website, you only have to trust the password manager itself. And you don't have to use a big cloud-hosted one if you distrust them - there are many password managers that you can just run locally on your computer (though without the cloud benefits of backup / disaster recovery). You can also just use a notebook with a padlock or something - frankly it doesn't really matter how you track your passwords, as long as nobody can get to it but you, and you use a different password for everything, and you have some plan for disaster recovery. That's the idea.