Apple Is Killing the Password

> One of these keys is public and stored on Apple’s servers, while the other key is a secret key and stays on your device at all times. “The server never learns what your private key is, and your devices keep it safe,”

So the server copy is encrypted... with a key that's generated on the device... so what if you lose or break the device? Are you locked out of all your online accounts forever?

I'm sure there's a way of recovering from that situation, but I'm also guessing that the recovery process is basically incompatible with a desire to migrate to an Android phone at the same time. This is despite (or perhaps due to) the fact that losing your iPhone or having it break is the moment when people are most frustrated with Apple and/or most likely to buy a new phone.