This whole conversation really comes down to this: what's your prior on the kinds of attacks that you expect? Because people have different beliefs about which attacks are likely, they come to different conclusions about security. If you believe that someone who gains physical access to your machines, or lives close enough to you to see notes on your computer, is most likely, you will probably agree with AJ and the author of the article. If, like Aaron and Stuart (and myself), you believe that someone compromising a website containing thousands or millions of stored usernames and passwords (including yours) is more likely, then you think that the article is baloney.
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