Simon Tennant wrote:
Traffic can be intercepted, replayed and whatever... but sharing a
secret between users as a way to access a common resource without a
per-user audit trail, seems like something that should never fly in the
first place. Especially not in 2010.

No, that's 1990. The feature was probably introduced in XEP 0045 "because IRC can do that" without considering that IRC MUST do that because someone decided that "nicknames are not owned".
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