@swheaties: I've seen no one (especially not Microsoft) make either claim. What has been claimed is that two factor authentication is more secure than single factor authentication (this does not imply either of your statements), and that SMS based two factor auth is more secure than e-mail based.

At this point, there's not much more to be said to you. You don't like giving out your phone number. Fair enough. Don't. Don't expect anyone else to have the same issue here that you do. More importantly, don't make claims that are simply false while trying to convince other's to agree with you.