For example x509 seems to be a disadvantage to me. I do not want anyone with a cheap DigiCert certificate be able to log in to my server, even as a result of some fat finger misconfiguration. OAuth assumes that both client and service provider can reach identity provider. Is it so for most serves? I am used to see pretty restricted setups, where many servers have no internet access and only update from a private package repository.
From one side, I really like the idea of reusing HTTP. Who does new protocols these days? Everything is JSON or XML over HTTP. And it's good enough for most cases. But is it good enough for SSH? WinRM works over HTTP, but it uses Kerberos for authentication.
Are there any significant real practical advantages? I don't see any. Are there any vulnerabilities, possibilities for misconfiguration, architectural flaws? Quite possible.