Re:frontend, you're absolutely correct. Magento's frontend is a sad state. MageOS is actively looking for ways to move Luma/Blank into a separate installable package so that devs are not forced to see it at every turn.
In terms of Headless, there are a bunch of different heads at this point, but none have yet solved what I call the "upgrade-safe theme" problem.
I like what we've done with Daffodil since it doesn't impose any of those limitations that come with themes, while still handling a lot of the complexity that devs face when building ecommerce stores.