I thought the SMS was only on free accounts and only so they can limit to the countries where they offer free services (Germany, Austria, Switzerland, Italy, France, Liechtenstein, maybe Benelux countries, not sure).
If it's for every account then yeah, that's not great. I must have forgotten about this, I use TOTP for 2FA and so never see any SMS from them.
They are definitely not the do-one-thing kind, they're more of a bundle of dozens of things done reasonably well, and then a few things done extremely well (e.g. their VPS Lite and hosted Cloudstack infra).
About the incoming PGP I don't know either, I believe I've only used something like that successfully with mailbox.org but it's been a decade or so so I might be misremembering; mailbox.org does have some PGP-based incoming encryption but I'm not sure if they generate all the keys there.