I don't understand why you downvoted me -- my point is perfectly valid.
"The concern is that in the 2 seconds it takes me to type the password in someone will intercept it and beat me to it?"
The concern is that someone will snoop the password before it even gets to your phone. SMS snooping/MiTM has been demonstrated before [1]. Time-Based One-time Password algorithms are safer because they are not vulnerable to the aforementioned probems -- they never touch the network.
"The concern is that in the 2 seconds it takes me to type the password in someone will intercept it and beat me to it?"
The concern is that someone will snoop the password before it even gets to your phone. SMS snooping/MiTM has been demonstrated before [1]. Time-Based One-time Password algorithms are safer because they are not vulnerable to the aforementioned probems -- they never touch the network.
"This is way safer than email."
I never said it wasn't?
[1] http://en.wikipedia.org/wiki/IMSI-catcher