Earlier quoted context omitted.
> but exchanging SSH public keys is actually a huge logistical hassle which scales very poorly. How do current solutions tackle this? It seems that at some point, if you want something to be two-way authenticated then you need to exchange some public keys.
Well that's the thing: SSH has recently gained support for signed public keys - i.e. x.509 style certificate authorities. Outside of that you have things like monkeysphere doing the same with GPG, or simpler things like LDAP scripts which just check the key against LDAP (Hashicorp Vault does something similar). But it's why I'm skeptical the UI is substantially improved: the simplest UI for VPN tends to be pre-shared…
that's what wireguard is doing.