Here's Apple's big problem: it's not a replacement for so many alternatives because it isn't supported on all platforms. Safari? Not on Windows. Apple Music? This actually has a Windows client. I'm not sure how good it is. But Spotify supports Windows and even Linux. Apple Password Manager? Will this be tied to iCloud? Will I be able to use it on Android? If I no longer have an iPhone will it be a pain to maintain an…
You'd be surprised. People want a neat solution so they don't have to deal with multiple nuissances.
They worry less about vendor lock-in (if they even understand the issue unless it's bitten them, and then they can consider the costs of switching as totally normal and expected, similar to how they just go find app replacements for platform-exclusive software).