You could get almost the same benefits and none of the drawbacks of a TPM by using a password hash function with enough complexity to inherently limit the number of checks possible per second.
I agree that for the user who would pick a secure passphrase, it's comparable security either way and thus really comes down to preference. I like tapping a quick PIN on the numpad rather than typing out a passphrase, but I can definitely see the advantages to the passphrase approach: you don't have to depend on a piece of hardware specific to the machine, and the attack surface for a potential backdoor is a lot smaller, especially if you're using FOSS full disk encryption software like Veracrypt.
what happens at lockout?
Isn’t it one million?