Smart wallets (passkey based) are so important. They are the most flexible form of an account, and as passkeys grow the network effects will increase. 

For example, adding a passkey to a shared group in Apple Passwords is the new way to create a family wallet.

I'm really obsessed with passkey UX for wallets. By nature, passkeys are extremely private and carry implementation guarantees that make them similar, in my opinion, to paper seed phrases. The difference being that storage and sharing architecture is very standardized for passkeys.