Where has this been decided?

https://wiki.ubuntu.com/DesktopTeam/Specs/KarmicFusa doesn't say so
AFAIU, it's just not been set in stone

> What can the user configure in the applet settings?
> 
> ... 

All the spec seems to say is that there shouldn't be regressions from
the Jaunty FUSA applet, which supported configuration of the password
option. I understand it might not be desirable on corporate desktops,
but Ubuntu also targets the end user, and not having to input your
password when switching back (or having to, if one decides it) is a
basic feature, that Gnome allows to set, for example for the screensaver
lock.

-- 
[Karmic Alpha 5] no preferences settings in indicator-applet-session logging 
out menu (top right menu) 
https://bugs.launchpad.net/bugs/425552
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