Can you factory reset an iPhone without the passcode? I thought Activation Lock was supposed to prevent this?

You can wipe without a passcode, but if the user turned on Find My iPhone before the phone was wiped, the phone will be a brick until one logs into the associated iCloud account.

Probably worth more as parts to a more shady repair shop. Last I heard, a shiny new laptop's only worth a couple hundred when fenced.

And this is better, somehow?

Depends if it reduces theft.

I think post Activation Lock and similar features on smartphone platforms, thieves usually sell stolen devices to those who rip them apart to get to specific parts that they can resell. That will continue until the phone makers figure out how to disable the display, digitizer, battery and other parts that have value even in a "bricked" phone.