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That's why all my passwords (including my Ring password) look like this:

c3Ve*w^ZHKmq1SQK&gGVQCezROLgZy

Individually generated, unique for every site I log into.

This doesn't help if your machine gets infected with malware. They can steal that password and you'd never know - which is the point: unusual account activity should alert the user.

If an attacker compromises your machine and steals your password they can also just route their traffic through it, meaning the IP would match the regular one seen by the Ring servers

Yes they can, but what we often see is accounts sold off to others. They don't give away their infected machine. They just harvest credentials.

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