How is that better than passwords? I backup my encrypted passphrase database to a cloud provider. When my house burns down and all my devices are lost, I get a

How is that better than passwords? I backup my encrypted passphrase database to a cloud provider. When my house burns down and all my devices are lost, I get a new device, download my own passphrase manager app, download the passphrase document, and continue as before. If someone breaks into the cloud provider and downloads my passphrase document, nothing happens.