It still defends against one failure mode (the website gets hacked but you’re ok) but yeah, obviously if you get hacked and the hacker knows how to get your vault out then you’re 100% screwed.
My suggestion is always hardware 2FA, even though it’s not as mature as the other systems. Personally I have two Yubikeys (in case one breaks/gets lost) but it does mean that I need to add TOTPs to both of them each time I add a new 2FA.
Yeah, they’re not pushing it because it matches some far-right authoritarian ideology Meta itself has, they’re pushing it because conservatives taunting libs who fall for it and try to talk reason into conservatives drives tons of engagement.