Ok, but the core of the argument to me is "Is having a bunch of passwords that you don't actually know all in one place more secure than having a smaller bunch of passwords that you do actually know that, still, can at most be leaked one at a time?"

For me the answer is no. I would rather have fewer technically less secure passwords than have technically more secure passwords that all live in one place. My passwords live "nowhere". There is no database breach, or peek over the shoulder that could ever compromise my entire wellbeing.

I also use 2fa wherever possible.