I completely agree. The whole concept of passive income really bugs me. I’ve been thinking a lot about these same topics, and recently wrote something that covers a lot of the points you mentioned, although not in as much detail.

Passive Income Is a Lie — Build Passion Income Instead

After dismissing why there is no such thing as true passive income, I conclude that the closest most of us (who are not already ultra-wealthy) can get to passive income is doing work that you enjoy — “passion income”.