Outlook, since Outlook 2016, has met Google's requirements for "more secure app" and uses their OAUTH verification method.
I don't use 2FA on anything where choice is involved, particularly e-mail. It's gross overkill in my opinion in virtually all cases.
I agree, though, that no one needs Outlook. As far as I'm concerned, e-mail clients are an anachronism. I can set up Gmail webmail to access all of my accounts, both on Google and otherwise, if I so chose. But as I've indicated, I don't like having accounts mix in one interface if I can avoid it. Clearly, that's a personal preference. But webmail is such that it can be configured very much like a standard e-mail client, in many cases, and not being dependent on any one computer is a huge asset, in my opinion.