Why is a pin more secure than a password?
Passkeys also requires the device. Using a pin with this is 2-factor. Pin + hardware token.
Since the things stored on the remote server have been called “passwords” for decades, it seems helpful to call the local thing a “PIN” to help more easily distinguish it.
IMO it’s not more silly than calling a hand-held computer a “phone.”
Password managers are not relevant, as you don't use a password manager to unlock your phone.
The people behind the takeover don't really give a shit about Yubikey-style tokens (which haven't achieved much market penetration anyway) but they've left them in to make the takeover less blatent.