We implemented a passwordless, OTP-to-email login system, and doing user research, people just complain it's too complicated. They don't like logging in to their Gmail and (as others have mentioned) waiting a few moments. It's especially bad on something like mobile. People like to use passwords, apparently.
I see passwords as reducing security (we have a low-security product so people can reset with an email, so security-wise, the upper bound is your email security), hence we used it. But people prefer the "remember the secret" shortcut!
I see passwords as reducing security (we have a low-security product so people can reset with an email, so security-wise, the upper bound is your email security), hence we used it. But people prefer the "remember the secret" shortcut!