Paypal actually merely prohibits hardware keys from being registered as passkeys for sign-in. I can’t register my Yubikey as a passkey for sign-in, but I can register Windows Hello which is device-bound. For 2FA, they only allow hardware keys, and do not allow platform passkeys of any kind. Also PayPal does not have any way to remove the password from your account, and even if no other option is registered, SMS is still forcibly turned on, so password+2FA is always available in the case of lost passkeys.
Apple still requires your account to have a password and 2FA to be able to sign in with. Your sign-in is not dependent on having one of your trusted apple devices with you to use the passkey. Which is fine strictly from the standpoint of lockout risk.
As far as I understand, they only allow U2F hardware keys to be registered as 2FA. I do take issue with Apple in this case, though, because upon registration, your whole account IS tied to those keys, and you have no say in the matter. SMS is disabled, trusted device codes are disabled, recovery contacts are disabled, the recovery key only exists for password reset and still requires your security keys to use it, and there is no recovery if you lose all your security keys.
Still, this is not as bad as if they were to require device-bound platform passkeys to sign in, since YubiKeys are very durable, not as expensive to buy extras as a smart device would be, extras can be stored in safe places without consequence, and user verification is not enforced on the hardware keys themselves during sign-in, meaning there is no PIN to be forgotten.
And of course, most importantly, Apple does not mandate security keys to be registered to your account. They are optional.
Google’s way of handling this is alright. You are always free to register synced passkeys and other 2FA methods to your account, and these device-bound passkeys are not required as the sole way to sign into your account. Google also provides no way of removing the password from your account.
They have a similar high-security account state to Apple available in their Advanced Protection Program, but this is voluntary, comes with a slew of warnings to ward off people who would be at risk of getting locked out, and synced passkeys are still allowed to be used to sign in.
As far as I know, Netflix does not offer passkey registration for user accounts. In fact, they don’t even offer 2FA. And I am not aware of any clever usage of passkeys for DRM by any company.
