These significant upgrades to iCloud Keychain are still in beta (macOS Monterey and iOS 15). If AgileBits' announcement represents their response to a competitor that hasn't even released yet, if it means they're diminishing their own product before the competition has even arrived, then I would have zero sympathy for them.

Quite frankly that seems an absurd hypothesis. In the face of competition from Apple, the correct response by AgileBits should have been to double down on product quality and pushing feature depth.