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Passkeys might really kill passwords
(www.theverge.com)
This is a most excellent place for technology news and articles.
The person who broke their phone screen wasn't mad about not being able to access the data on it in this case, but rather that they couldn't receive a text message as the second factor to log in to their bank. Having a backup wouldn't have mattered, they couldn't receive the text. Like it or not, having two-factor authentication on accounts is a necessity with the phishing and malware problems out there. Having multiple (secure) factors attached to your account is the best protection against getting locked out.
The breaking of a phone and loss of the data on it can still be protected against by having backups in other locations or offline, like you have.