The question is more along the lines of: does this provide more security than passwords for real users? Stealing a password is probably more easily done than s

The question is more along the lines of: does this provide more security than passwords for real users? Stealing a password is probably more easily done than stealing a private key that is never transmitted. The primary threat model is protecting the credentials of real users rather than protecting against fraudulent users (though some considerations have been made for that too).