> Take a random Internet service protected by passwords and add a second factor to the login step where after login and password you must enter a code that gets SMS'd to your preconfigured phone number. The number of fraudulent logins will drop to near zero as password guessing is no longer sufficient to break in to an account.
I think you're mitigating one set of risks while adding others.
EDIT: just want to add, I do think UX should be a primary concern of security; I just disagree with your analysis of his post.