I don't think phishing is such an obscure scenario.
The point is also that you as an individual can make choices and assess risk. As a large service provider, you will always have people who reuse passwords, store them unencrypted, fall for phishing, etc. There is a percentage of users that will get their account compromised because of bad password handling which will cost you, and by enforcing MFA you can decrease that percentage, and if you mandate yubikeys or something similar the percentage will go to zero.
The point is also that you as an individual can make choices and assess risk. As a large service provider, you will always have people who reuse passwords, store them unencrypted, fall for phishing, etc. There is a percentage of users that will get their account compromised because of bad password handling which will cost you, and by enforcing MFA you can decrease that percentage, and if you mandate yubikeys or something similar the percentage will go to zero.