Should we all switch our passwords to three random words?

@meeee11111:

If my iPhone ever got remote rooted through hacking or stolen (and shut off so I can't use Find My iPhone to wipe the device) and they use a GrayKey tool or other device to physically get into my iPhone, would the Secret Key be bypassed?

So then my only layer of protection would be my three word password?

The password is what protects your 1Password data on your device. If someone has complete control over your device without your authorization, even remotely, then that is what protects you at the end of the day.

https://support.1password.com/secret-key-security/:

Your Master Password protects your data on your devices. Someone who has access to your devices or backups won’t be able to unlock 1Password without your Master Password, which only you know.
Your Secret Key protects your data off your devices. Someone who attempts a brute-force attack on our servers won’t be able to decrypt your data without your Secret Key, which we never have.

So in your scenario, it's the Master Password that protects you.