If you want password auth, you already have to change a default setting in SSHD and restart it. How exactly is removing that as a option ‘less complex’ for the downstream distros?
I don't really understand your question. Removing password auth reduces code complexity and therefore attack surface whilst also preventing users from using the software with a dangerous configuration. Maybe the users don't want that, but tough shit, maybe it's the nudge they need to use SSH keys.