I don't think those are mutually exclusive options :) Most developers, especially with lots of legacy apps are better off using a secrets manager. But there is no reason to not push the boundaries of security for new software and onboard passwordless and secretless options.
P.S.
I tried Infisical a couple of months ago. I think if I was Hashicorp Vault team's PM, I'd be worried. Your team has done such a great job at U.X. I was astonished to see an early startup with such a great integration catalog. I think you aced it - modern developers are desperate for out of the box integrations with 100+ services they have to use every day.
No problem! Keep it up with out of the box integrations, focus on U.X. and developer experience and I think you will be on track to become as big or bigger than Hashicorp :)