They are not better than hardware keys (since they are basically software versions of physical hardware keys), but at least better than passwords.
That is not technically correct. Passkey is a protocol first and foremost, and the way it is implemented is up to the vendor. Can be software, eg. Apple, Google, Bitwarden, etc, but you can as well use a hardware key, eg. Yubikey has Passkey support for quite a while now.
The reason why I said that is because they are currently only stored in the cloud. It's not like hardware and passkeys function differently. It's just that a physical key (that you have) is more secure than having it on some companies computers.
That is not technically correct. Passkey is a protocol first and foremost, and the way it is implemented is up to the vendor. Can be software, eg. Apple, Google, Bitwarden, etc, but you can as well use a hardware key, eg. Yubikey has Passkey support for quite a while now.
The reason why I said that is because they are currently only stored in the cloud. It's not like hardware and passkeys function differently. It's just that a physical key (that you have) is more secure than having it on some companies computers.