My instincts flag this as part of the same gaslighting as "end to end encrypted chat apps"
Discussion
Good instincts probably. Don't know much about it, but smells like further kyc of sorts, at least for first two options I listed (if I understand say iCloud keychains...which I kinda don't, but it's connected to appleid so that's not great)
The one benefit I can see is maybe a way to hold 1 company accountable for all your login security
"You made this device, you told me it could handle logins securely with your backend, you handled my logins, I am writing you this letter to inform you I will be suing you in court and/or bombing you for this money I lost when I was hacked"