Welcome @Kettunen It looks like you have a good grasp of the situation. Security and convenience are at opposite ends of a solution. As you increase one you decrease the other and most businesses try to be as secure as possible, without creating a nightmare customer support problem. But there is a better solution on the horizon. Passkeys.
Passkeys: the future of authentication in 1Password
And we recently had a discussion about them.
Personally I wouldn’t discount two factor (2FA) it is the best current solution. So why not look into Passkeys and tell us what you think about them?