It has been quite a slippery slope. Services that used to allow password auth have retired them in favour of bank detail login. I can kind of get it, since it's offloading support to the banks, but it's also annoying since the bank logins themselves are a pain to setup, maintain and use (mobile app only).

It would be nice to have some good standard that is less invasive.

At least in Sweden it is because it is a pain to have both bank id and passwords because by contract it is forbidden to allow a user that previous used bankid to ever use password again.