1Password's and Dashlane's implementation keeps the key material and does crypto in software, meaning it's less isolated from the operating system than hardware-backed implementations. That might be an acceptable tradeoff for some, but definitely not for all, and I doubt that was the original intention of FIDO2 when it was designed -- the spec only mentions virtual authenticators in the context of testing.
I hope the FIDO alliance members come up with a solution that has both hardware backing and third-party vendors. I'd love to have 1Password syncing passkeys to Yubikeys or secure element that can be used independently of the 1Password app and subscription itself.
I hope the FIDO alliance members come up with a solution that has both hardware backing and third-party vendors. I'd love to have 1Password syncing passkeys to Yubikeys or secure element that can be used independently of the 1Password app and subscription itself.