Ok maybe I'm making this more confusing than it needs to be, but how exactly is this different from keychain? I use TouchID on my m1 air, can't remember the last time I actually had to type in my password.
Functionally, for you, no difference. You'd still do a TouchID or FaceID. What's happening today is that entry from you is pulling your password out of the Keychain and pasting it into the fields for you. That password would instead be replaced by, if you'll allow me to illustrate this as best I can, with a one-time use token - like the old RSA tags or soft token you may have on your/work phone to sign into a VPN, or access a restricted system at work. There's additional layers of security that appear to work like PGP with a private key you control and generate public keys from, but the general gist of it is your password is replaced by a tokenized entry.