Q. Is this really as harmful as you think?
A. Go to your parents house, your grandparents house etc and look at their Windows PC, look at the installed software in the past year, and try to use the device. Run some antivirus scans. There’s no way this implementation doesn’t end in tears — there’s a reason there’s a trillion dollar security industry, and that most problems revolve around malware and endpoints.
Sorry I don’t take everyones word as truth. This guy is just one guy. One guy against the whole Microsoft corporation whose entire fortune depends on this not to fail in the way he said it certainly will. Absurd.
Then don’t believe one guy, read the other reports on the feature, or the reports from Microsoft’s BUILD conference that confirm these details.
It’s stored in the appdata folder in plaintext.