That's true of SMS 2FA too, though, as well as many TOTP implementations. Being able to copy credentials to a new device is a major usability plus, consequently it is widely implemented.
Physical webauthn tokens are obviously better, but software webauthn is the second best thing. Software TOTP is a good bit worse, and SMS OTP shouldn't even qualify as a secure method
Definitely, so for scenarios where I want the strongest possible 2FA, I use a hardware authenticator.
For everything else, WebAuthN based on a software authenticator is both more secure and more convenient than passwords, and realistically even than TOTP (having a higher takeover risk but lower phishing risk).