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I wonder if you'll need to use Face ID / Touch ID to authenticate at the pass points. Or will it be like the Express Transport feature where it bypasses that security step for speed?
 
When I was there in January of last year they had the magic band scanners under the screens showing the ride pics. I tapped the admission card that was also in the Disney app and that saved my pic. It should work the same way with the phone or Apple Watch.

They unfortunately don’t have this feature on every ride. I just came back from WDW, and I asked a cast member about the 7 dwarves mine ride and the Dinosaurs ride pictures. They said it’s one of the few newer rides that does not offer a tap to sync and instead auto syncs to your magic band. I imagine eventually they would port the other rides to do this
 
As I recall, the bands were free. So they're giving up an expense, not revenue.

People had the option of paying more to decorate the bands... I don't recall any of my friends/family doing that but maybe it's more popular with some groups?
Disney stopped giving free magic bands with a resort stay starting 1/1/21. Now you can get the plasric card for free, pay for magic band or (soon) use Apple Wallet.
 
I think this is a great additional option for those who already own an Apple Watch, and don't see the magic band as a necessity. For me, the magic band was fun to use at first, and I still wear them as a decorative accessory, but would prefer the simplicity of having the functionality streamlined to the watch I'm already wearing daily, and that I use to pay for items in the parks (didn't like using magic bands for payments).

For those who still want magic bands, Disney is not taking them away. You can still use ones you already own, or purchase them to be used around Disney World.

So, at least to me, this is a net positive. The only people who might be losing out are recent first timers, who don't get to experience receiving that magic band package in the mail before your trip, and scanning it to get on the Magical Express at MCO. That was fun.
 
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