In particular, they distinguish between "copyable" and "hardware-bound" passkeys. They're both passkeys, and can be used wherever passkeys are supported, but only the "hardware-bound" passkeys support attestation.
They can be stored in them, but also in software; even when stored in hardware, they can be marked as extractable to some trusted party (a companion device with the same root of trust, a trusted cloud sync service, a supply chain attacker etc.)
There should be a different standardized term used for hardware bound keys. So users wont get confused.
If you are worried about state level activity, have it stored in a single place that can be compelled by law to disclose it and that is off the table for you.
Which, sure, you can argue that there are still hardware tokens for people. But that is itself a signal, no?
Make a passkey on your Mac, it appears on your iPhone.
Make a passkey on your Android, it appears on your other Androids.
Anyone who can bind a new iPhone or Android to your Apple/Google account wins your passkeys. I think the only passkeys properly tied to hardware are dedicated FIDO devices.