Depending on the feedback, a shoulder-surfer could figure out how long
the password is, which could be useful in an attack. Also, if visual
feedback is enabled, it will diverge from other standard login
procedures such as 'login' and 'ssh'. This should not be the default,
but could be configurable for those who want it.

-- 
Entering password in Terminal gives no visual feedback
https://bugs.launchpad.net/bugs/194472
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