TOTP, autofill, and Face ID work, so it’s probably due to you being on iOS beta.
However, I’m on iOS stable and I’m having issues getting passkeys to work with this Testflight version.
And for the rest of your feedback – spot on!
It feels like they aimed to keep the same “theme” (understandably) while ‘modernizing’ it, inadvertently making everything less dense and less usable, instead of doing a proper rework (naturally subject to change).