Here is where this bug stands:
The desktop team has mentioned that they will *not* veto a change regarding 
this.
There are members willing to upload a change to fix this bug, but this bug was 
blocked due to Security team's earlier vague comment. [which turns out to be a 
concern about server installs]

Security team has now discussed and mentioned their concerns and has
given us how this needs to be fixed for new desktop installs.

Now, someone needs to work on a fix as mentioned by security team in
comment #74 .

Once this is fixed ,the previous addition in the help documentation
needs to be changed to mention how to not show passwords for users who
are concerned. [a reminder the password stars will only be shown until
the user hits enter , once the user hits enter it will be erased. ]

** Changed in: hundredpapercuts
   Importance: Undecided => Low

** Changed in: hundredpapercuts
       Status: Confirmed => Triaged

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