I believe you'll also need bluetooth enabled on both devices. At least you do for those "scan this QR code displayed on your computer to authenticate using the passkey on your phone" feature, which this seems analogous to. Bluetooth is used to ensure that the two devices are actually physically co-located.
2. If free markets did exist they would not conform to the theory that people are using when they think of what free markets are, since people do behave rationally, power dynamics are real, and no consumer can have all of the information needed to make rational decisions even if that information were available
3. The market is providing solutions to its own failures without fixing the underlying failures because it is more profitable this way. Is buying something from a company that mitigates a problem created by the same company actually a free market, or is it just extraction?
CTAP2 requires Bluetooth but I'm not seeing any mention of that protocol here? It wouldn't really solve the "are you a human" thing, because you can just implement your own CTAP2 protocol handler if you wanted to write a bot.
I think the phone will just do basic remote attestation and then do a POST request to Google. Still not exactly difficult to bypass for anyone with a dollar to throw at the click/ad fraud farms, though.
Sometimes, sort of. Most passkey usage doesn’t involve bluetooth. When it does, there’s no real data being sent over bluetooth, just a meaningless hash that can be confirmed using a secret inside the QR code.
So really, it’s like I said, Bluetooth is used to make sure that the device consuming the QR code is actually near the device that’s displaying the QR code.