For the average investor who is saving pennies or few hundreds of dollars every month on the best scenario, it will take a long time until he reaches somewhere in this financial world.
Therefore, for those who are starting their financial journey just now, maybe it's more advisable to allocate their funds on non-passive investments, what means they won't have a source of automatic profit, but at least they can pursue superior returns to maximize the potential of their money to generate further monthly income.
Once they manage doing this first step, then passive income investments start looking more attractive.
Well you're right about passive investment not generating much more profits but one can still accumulate more through consistent plans, let's take for instance you're earning 100bucks each month when you aim at 500buck then you'll need to take up your plan so seriously to meet up your expectations