@rmondello
For example, recently, the US Administration sanctioned the organisation Autistici/Inventati, for "support[ing] the operations of far-left terrorist networks" - I am not going to discuss the validity of that - but, as a result, their primary domain was seized, and due to the implementation of Passkeys taking away that agency from users, served conveniently to enforce the USGov's decision, as, anyone who set up FIDO based authentication found themselves needing to recover their account
And of course, yes, requiring account recovery would have been worth it just for the sake of, if it was a phishing site the user went to, would only be given a new (hopefully nowhere-else-used) password.
And yes, it would be unreasonable to expect your password manager to magically know that this domain is actually the same as another - but with standard passwords,a user was given the freedom to bypass the 'This is the wrong site' warning and hit 'Fill anyway', or just manually copy and paste their password.