Sadly this will take off, and be tied to everything apple. From a tech perspective I would never use their tools even if they are the most convenient. But the reality is most people will see this as the only option for password management, and 1password isn't free, so for them they will see no better way out.
I would be happy if more people adopted password managers. We'd all be a lot better off if they did. And personally I don't care which tool they use to get there. But there's still too much friction in using a password manager, not all of which is the fault of the password manager (eg different password requirements, how 2FA verification is handled, the antiquated notion of password expiry, some sites split username and password onto two pages so you have to verify twice, some sites using a third field you have to fill in like surname).
So I'm not sure how many people will actually use this just because of this friction.
Branding a solution as Apple isn't a guarantee of success. If it were, we'd still have Safari for Windows.
We are not always the target demographic. I know many people who use apps because they were the default. Most people used Internet Explorer because it was, and many still don't know that there's an alternative, or even why use an alternative.