I already noticed this change as I got 1Password 8 for iOS finally today (and in the TestFlight now, after checking every day for two months for a slot, ha). I'm happy enough with most changes so far, but a single tap to reveal a (non-large, ideally--that's hard to read!) password is definitely necessary. I use this on my Mac regularly and also my phone. For example, I'm occasionally working with computers (I'm an IT consultant) that are new and I need to enter administrative credentials visually from my phone into the computer.
Or, I occasionally hand check deposits at my front desk with the check scanner when my front desk person is out of the office on vacation. I log into the computer with a Yubikey and AzureAD, but my bank requires a company number/username/password and then a PIN and 6-digit code from their own hardware ID. I don't want to install 1Password on that computer as I don't use it otherwise, so I'm fine typing the bank password in, but need to do so visually from my phone screen.
I'm usually in a hurry, and want to just tap to reveal--it's long, and shows up much better in the text box than with the Large Type field, as well. I don't use it often, so I don't want to pin it, but I do have it in my Favorites--it's already been annoying to have to open the item to view the password (the Favorites list in 1Password 7 and then reveal the password (the drop down means not waiting for tap-and-hold) and type it. Tap-and-hold is too long, it should be reserved for much more infrequent things now that Apple killed Force Touch where I could just hard-tap faster to access what is now tap-and-hold (now that Force Touch is sadly entirely dead--so nice to force touch the keyboard to position the text caret, now a long-touch wait on the space bar is required to do the same :-( )
Anyway, I fully agree that easier Reveal access (pinned or in-item, ideally) without Large Type, should be faster than touch and hold requires!