Hello @GeorgeD37 ,
The main purpose of credentials is to simplify auth. settings in a linked service. We are soon going to add support for User Assigned Managed Identity in Credentials.
In future, we do plan to extend their use to solve identity confusion, by integrating them in Pipeline activities, and RunAs/BrowseAs in Notebooks/SparkJobs/Pipelines/Dataflows etc.
Synapse assumes that pipelines run as workspace system msi, and that workspace system msi has access to all linked services / credentials.
So even when a user configures a pipeline, access to credentials is assumed to happen as msi at runtime, hence the requirement is for the user to be able to impersonate the msi.
There are some "run as" feature developments happening for pipelines, where user would have choice on which identity the pipeline should run as, and that identity wouldn't have super powers like system msi.
Hope this helps.