| Just possibly because even without encryption of the data stream,
| RSA-user-authentication is much stronger than ".rhosts" files...
| ... and can be used safely from a port number >1023.

I've received a number of responses about this, here's where I'm coming from:

If you're concerned about user authentication to the point where you want to use RSA 
keys (which is stronger -- no problems there), you should be concerned enough to want 
to encrypt the traffic also.

You're 100% right, there are more features to SSH than just encryption.  From my 
perspective though, without encryption, there's no point to using SSH.  I've never had 
a situation where non-encrypted SSH is what I needed.  YMMV.

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