because it'll let microsoft better track and datamine you, and possibly even analyize the data on anything you log in to, for their gain
This has nothing to do with Microsoft.
93% of ALL cybersecurity breaches occur due to phishing. Ninety three percent... The grand majority of those are stupid simple passwords. Cryptographic keys such as YubiKeys are secure and phishing resistant, because you have to be in physical control of the key for it to work. It requires that you touch a button to activate it. It’s impossible for threat actors to leverage these, and they go elsewhere.
There’s no economy for threat actors when passkeys are adopted universally. The idea is to make it nearly impossible for a threat actor to establish a beachhead by making it impossible to login with a password. This is good practice and should be adopted.