Services like Authy address some of the loss of device issue, and always a good idea to have a backup token (e.g., yubikey) physically escrowed somewhere like a safe-deposit box.
But it is a whole lot of extra work to set up and maintain long-term, even with the best intentions.
+1 for Authy. Just get a used cheap Android phone for like $30 and use it as the backup device for Authy and never fear about losing your 2FA device again.
Does Authy actually offer 2FA? It sounds like the security boils down to your encryption passcode used to encrypt the 2FA secret, so you aren't actually using 2FA at the end of the day.
For personal use it probably is a good compromise for services which don't implement 2FA properly (that is to say, services that don't allow you to register multiple 2FA devices.) But realistically you might want to just disable 2FA and rely on your password manager.
I'm not sure what you meant by this, Authy certainly provides TOTP, and the encryption password is only used when you need to sync the 2FA secret to other devices, which by the way also requires confirmation using SMS to your phone number as well.
I usually take 2FA to mean that you have to use two of (something you have, something you know, or something you are.) If the "2FA secret" (TOTP secret?) is stored on multiple devices it doesn't actually prove ownership of "something you have" it's effectively no different from a password stored within a password manager which is considered simply "something you know." So basically the TOTP secret is a second password with some obfuscation that protects the password. But software running on one of your devices could easily steal the secret.
It does seem like this is somewhat more secure, in some sense, but it weakens the security that TOTP is intended to provide.
TOTP has always been a second password (heck, it's in the name). If you know the secret and the algorithm you can do the maths yourself in theory without needing any hardware, so in theory it can always be considered "something you know", even without all the syncing stuffs from Authy.
In any case I don't see how the Authy password can weaken TOTP. It's not like there's a webpage out there where you can enter the Authy password and it will give you back the TOTP secret for a specific user. It's only used to decrypt the TOTP secret if you choose to sync that secret to another new device, which again requires SMS verification, PLUS confirmation from an existing device, PLUS you need to have the sync capability setting enabled (so you can always sync the TOTP to your backup device first then disable the sync setting to prevent additional devices being synced).
Or just copy your TOTP codes to a second device without going via the internet.
I'm annoyed Google Authenticator makes it so easy to transfer accounts to a new phone, how will you know if someone's cloned your TOTP private key while you were sleeping?
But it is a whole lot of extra work to set up and maintain long-term, even with the best intentions.