Generating Secure Passwords for your Linux Server

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Update: March 4th 2024: While the guidance below – originally provided in 2013 – emphasizes the creation and management of secure passwords, more than a decade later, it’s important to recognize and advocate for the use of passwordless authentication methods wherever feasible. Authentication keys for SSH, biometric authentication, and single sign-on (SSO) are exemplary alternatives that… continue reading.
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What perfect timing to be seeing this on the forum. I am getting ready to start my first Linux based server so this is handy to know. Security is super important, as we all know and setting it up right for a server is crucial. Are there any other sources you can link me to for setting up a Linux server for the first time?

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I still haven’t got behind using authentication keys for SSH yet. If I lose the key, I’m permanently locked out aren’t I? It seems a complex password is a better choice. I also use MFA to protect SSH which seems to be as good as security can get. Definitely open to being shown that I am wrong, definitely no expert here.