It is optional! Personally I'd rather the second factor was a little more dependable, the 2nd factor for my LastPass account is a lookup grid. That piece of pap

It is optional! Personally I'd rather the second factor was a little more dependable, the 2nd factor for my LastPass account is a lookup grid. That piece of paper in my wallet is unlikely to run out of battery power or otherwise malfunction, and doesn't have the potential privacy issues you highlighted.