We've invented better things, but they inherently have the problem of: What if I lose/break/etc my hardware token? What if it gets stolen? Plus of course the vendor lock-in potential.

The closest we really have is biometrics but even those have complexities, particularly with deep-fake style tech getting really near perefect.

I'd rephrase. Underneath it all is a secret. Classically, passwords were shared secrets with someone. Everything since has come down to a way to not require direct sharing.