I applaud any effort to fix the "password problem," but isn't this functionally equivalent to just using the "Forgot my password, email me a reset code" link every time you want to log in?
I'm okay with this.
Does Gmail now support 2FA? The last time I checked, Gmail supported Google's 2-Step Verification. 2SV includes backup codes, which cause 2SV to be 1FA:
Password + Backup Codes = Something You Know + Something You Know = 1FA