As you point out, the single point of failure is access to the passkey repository. Of course, this will usually be 2FA, so much more secure than simple passwords which people usually employ.
One major issue, IMHO, is vendor lock-in. I’ve no doubt Apple is going to make migration away from iCloud a huge pain in the ass. It’s just another way they’re going to make it difficult to leave their ecosystem.
I’m also worried about backups. People lose access to their Google and Apple accounts routinely for any and no reason at all. Will these keys be stored in the cloud? If so, access to EVERYTHING is just a capricious random algorithm away from being lost.
I wouldn’t touch any passkey system which doesn’t provide a seamless way to migrate away especially if I’ve lost access to my Apple/Google account.