Unfortunately, I have to disagree. While I never had any major problems with them, my company's 401k accounts used to be with them. At the time (this was about 5 years ago) you couldn't have a password longer than 8 characters and they didn't support 2 factor authentication. They had it, just not for your account. It was quite frustrating. Maybe they've finally wised up? But even so, that's hardly keeping up well with tech.
It was even worse, if such a thing is possible. Passwords were case insensitive.
https://1password.community/discussion/60363/psa-schwab-now-...
There was an HN discussion about this, but the original article is now lost to the mists of time.
https://www.sfgate.com/business/article/The-genesis-of-disco...
You are right that Schwab makes a pretty good profit from it. The way they do that is by lending "your" money to their margin customers and charging those people 7% or more while paying you pennies.
In a "margin" brokerage account, "your" money is merely a debt obligation of Schwab.
TD Ameritrade (and now I think Schwab) will sweep cash from your brokerage account into a real, genuine, bank account. But the interest rate is still almost nothing.