Passkeys are the better end state for many high-value accounts, but the operational reality for most users is still mixed. They need a system that works today across legacy services, smaller SaaS tools, and the long tail of consumer apps.
That is why the password manager remains the practical center of gravity. It creates unique credentials at scale, reduces memory pressure, flags reuse, and gives people a place to store recovery material instead of improvising in notes apps and screenshots.
In other words, password managers are not competing with passkeys so much as enabling a safe transition toward them. The manager is the current operating system for identity hygiene.