I really, really wish you were right when you said "All computer users understand passwords [...]". I frequently end up doing a lot of support stuff for my father, and he's not really that old.

His line of work has him dealing with some pretty sensitive material, and a two-factor authentication is required for it... something that, when introduced, was a source for many calls and angry shouting. I could have deferred this to their tech people, but I'd much rather spare them the anguish. ;)

Bottom line: It's getting better, but you are still, unfortunately for us all, way too optimistic.