Not really in my opinion, the threat model becomes different.
2 factor authentication is used to avoid attacks when your credentials/password are lost/leaked/stolen. Many people reuse their password or have a weak password. Having 2FA enabled also improves protection against brute force attacks
It does not take into account the threat of having your phone stolen or an SMS intercepted.
So as an attacker, you still need the login/password/phone combination to authenticate. The phone can be replaced by an intercepted SMS, while it has been shown it can be done, I wouldn't call it easy. There is no way to update the phone number while not authenticated and Fastmail requires a second password confirmation before updating anything in password settings.
When you lose the password, now the attacker needs the phone or needs to intercept an SMS.
When you lose the phone, the attacker still needs to bypass the lock screen and know the username/password of the Fastmail account.
What would you suggest to improve this? Recovery via email is no good as email can be intercepted as easy as SMS and a phone call is no good as that can be social engineered.
It's pretty much OK in my book, you simply shouldn't think that 2FA means there's zero risk.