On the other hand, all the little services I'm building for myself are passwordless and use passkeys with emailed codes for setup/reset.

Passwords were a really poor solution to the problem of security, they didn't take the human factor into account. After a rocky start, I'm now finding passkeys super easy and convenient to use. Far more convenient than OTP codes.

I appreciate that if you're OS/browser doesn't integrate nicely with passwords you might be in for a bad time. I'm having a great time with 1Password, though I believe native apple handles them nicely now too – and I suspect this is true of any modern password manager (even the ones built into the browser).