They're both on my phone anyway, so I don't really see the difference? Whether it's in one app or spilt across two apps makes no difference if there's no extra layers between. Having it all in Passwords is better in that regard, since it requires you to use Face ID to open the app.

I don’t think it matters much. In 1Password you still need your secret code to login in addition to your password. It essentially acts like a second factor.

I could give you my 1Password username and password right now and you wouldn’t be able to access it.

Being logged in to my 1Password essentially verifies that you have a physical device of mine.