What about people who only have one device? Kids, elderly, people with only work computer.

Simply paying is not sufficient. You need to be a telecom company, or a researcher afaik.

In what world would the US gov care to get into your bank account? Or your Facebook account when it’s already tightly controlled?

Proton is already used for identity management: OTP via email. They’ll implement OAuth if there’s enough demand for it. A company’s purpose is to be profitable, ethics side is largely irrelevant.

Many countries already have digital government ID: Australia, Estonia, Russia.

S7 will be retired or extended with access control. TOTP apps don’t work for edge cases like broken phone. Dedicated token devices get lost. SMS will continue being the main solution for 2FA.

Not true. SMS is encrypted in 3G, LTE, 5G. Block cyphers like Kasumi and A/9 are used. SMS is reasonably secure, because it’s hard to infiltrate telecom systems like S7