Earlier quoted context omitted.
> I believe nearly every single article about setting up a self-managed crypto wallet had stressed out the importance of having a backup. Serious ones had even explained the 3-2-1 rule. Yes, this is why it is incompatible with widespread adoption. Most people do not want to do this, and in fact could not do so effectively without learning and thinking a good deal more about computers and risk scenarios, which they do…
> Most people do not want to do this Yes, and I think that's not because they don't want to do it but because: 1) they don't know that they should do this; 2) they don't know why should they do this; 2) they don't know how to do this; 3) because even the systems marketed as current state-of-art (Passkeys) are poorly designed and don't even allow to have proper 3-2-1 backups conveniently (can't enroll a device sitting…
The problem though is that since one has a number of passwords which may be different but closely related, a human may be able to infer a few possible passwords from a few compromised ones. In other words it still dramatically shrinks the key space an attacker might want to try to brute force. Preventing re-use is then a problem for 2fa regimes.
For my part I won't use passwords I cannot memorize and keep memorized in relation to the web site.