Please give some reasoning along with your claim.

In what way do they suck, in which cases? Do they really need to stop being used?

I'm not just being pedantic. I just haven't had any problems with the concept of passwords as a security measure. Many implementations are flawed, but that is a different manner.

I think something like Mozilla's Persona is the way to go. It ties your identity to an email address, but it's easy enough to get those anonymously.