from a theoretical, scientific, cryptographical point of view it might
be (and probably is) no problem to display the passwords without
restriction once the keyring has been unlocked as anyone really
interested can retrieve them anyways. not having to retype the
password[1] dramatically lowers the amount of both knowledge and malice
needed, however.

contra: having to retype the password might create the false illusion of
a security and users might believe passwords are secure when they are
not.

pro: on the other hand, it might stop your buddy from looking at all
your passwords when you show him the wlan password he needs when your
kids playing in the same room accidentally throw a basketball against
your chair, a leg breaks, you fall down, spill your cup of coffee. now
you go to the kitchen to clean up the mess, to the bathroom to clean up
some more mess and change clothes. and then you remember: "damn! i
forgot to lock the keyring..."

this user story is purely fictional. i don't even have kids :) but i
think having to enter your password before displaying passwords in plain
text (or not allowing that at all!!!!) would stop most
opportunistic/accidental password leakage.

[1] the keyring manager in firefox uses this approach and i think is a
sound approach...

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seahorse shows passwords without verification
https://bugs.launchpad.net/bugs/189774
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