It feels like doubling down on a method of auth that NIST classifies as restricted by my view
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Regardless, identity in markets we care deeply about -- India, specifically, but others with many first-internet-users as well -- has swung *hard* to SMS OTP over the past 3-5 years. Many (most?) users in these markets don't have an email addr they know or care about.
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The consequence is asymmetric: the web can continue to withhold this capability (even in a form that can be an on-ramp to something better, as I believe this design is) or it can try to get to a competitive place that lows teams to bet on the web for the long haul.
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