Earlier quoted context omitted.
So if I have 700k usernames I can pwn one of them with 50% probability. Cool! With 3 attempts allowed I only need 230k usernames, even better! The "secret" stored in the browser doesn't protect you from this, since I'm not stealing someone's code; I'm logging in from my own browser. (Of course I'm doing this via a botnet, so you won't notice it by IP address)
With passwords you will get even higher probability if you just try 100 most popular passwords allowed by the service on hundreds of thousands of users. Try making password creation too difficult and now password reset will be the default authentication for a lot of users anyway.
I have nothing against password-reset-as-authentication aka "magic links", when done properly. And by properly I mean not using an ultra-low entropy auth code, like the parent is proposing (6 decimal digits, aka 20 bits of entropy).