I was worried this would be a major pain when I enabled it, but I have to say, it has been much more painless than I thought it would be. Most of the time, I don't even think about it. Most of my consumption of google mail is through clients on my laptops, iPhone, or iPad. So in that sense, it's not much different from a regular password. The difference is that someone else has a much harder time cracking my account. It's actually much less obtrusive than using lastpass (also highly recommended, but not as transparently usable).
That being said, two factor google auth wasn't going to save Matt Honan here. Identity, trust, and authentication on the internet are all built on a foundation of sand. We need a new model.