Apple T2 Security enclave concerns

Yes, but did you actually successfully change the password via this method ?

Re: “… Now, I CAN set up a firmware password to prevent something like this, but sometimes it may not be ideal for my environment, and/or I assume that it can be bypassed one way or another …”

Only by Apple with sufficient proof of ownership.

Ref:

Set a firmware password on your Mac - Apple Support

Mu-iOS wrote:

I have tried the command, and it instantly opened a reset password window prompting me to type a new password for the user account, without asking me for the password.

Did you do this by going into recovery?

You can't reset the password without knowing the password.