It makes sense if you want to move from two factor authentication to just the second factor while making it seem new and cool?

It seems to be smoke and mirrors for you register a bunch of TPM/HSM.

Don't be so quick to dismiss it. Afaiu, (one of) the problems they intend to address is the (all too common) case of breach of security at the server where large number of passwords are stolen. The public part of a passkey, i.e. the one stored on the server, is worthless to an adversary.

I think it's a great change but I am critical of the way it's being marketed.