I'm not sure I fully agree, in a situation where you reuse passewords everywhere, having SMS 2FA on top of it is still more secure that no 2FA at all, it makes it harder/more costly to break through.
My understanding of it is if you can use anything other than SMS 2FA then use that and remove SMS, but if your choice if between no 2FA or SMS 2FA then go with SMS. Also, use it stictly as 2FA, not as identity.
This is not my area of expertise so if I'm wrong I would genuinely like to understand why.