I mean you’re right in that, thinking about this on an abstract level, your suggestions seem like no-brainers.
But the current system works well enough in the vast majority of cases. And the fixes to the problems you list would add considerable complexity. I don’t think it’s actually that clear that fixing these problems would have a net positive effect on the world.
The size of the market just for identify theft protection is 10 billion USD [0]. There is 30 billion USD in credit card fraud a year [1]. I don't think that is working well enough, that is a multiple-FTX sized loss of money every single year going into a problem that is fueled mostly by really bad underlying security systems.
But the current system works well enough in the vast majority of cases. And the fixes to the problems you list would add considerable complexity. I don’t think it’s actually that clear that fixing these problems would have a net positive effect on the world.