What's the correct minimum length for a password? 6 chars? 8? A number that isn't even? Here's what the big guys do (and why there's much more to it today than just length):https://www.troyhunt.com/how-long-is-long-enough-minimum-password-lengths-by-the-worlds-top-sites/ …
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You're correct, when enabled for 1% of users it effectively makes them too expensive to phish. That's only true if attacker gets 1% more victims when he supports it. If he gets 30% more victims, economics change and worth supporting. Attacker already has capability to phish.
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In my observations, password reuse and easy to guess passwords are the huge threats on their own. Phishing, while also not apparently that much harder in theory, is actually practically out-of-reach for many of these opportunistic attackers.
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