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Yes you need to unlock the The hardware key
In that case it does sound better, and many sites using passkeys still have you enter your username first anyway, at least at this point. I don’t know how Android implements it, I think iOS likely supports this use case and know that it also works as a second factor to a password through the same Passkey workflow. Unlike the Yubikey it always stores the key when you register though, even if it isn’t fully passwordless. Unfortunately what’s easy for the consumer will dominate.
I think the argument and the article is users just are going to avoid this whole confusing mess
And I would absolutely like the ability to use hardware key to log into multiple accounts on the same service.