Your proposal: * Encourages bad (easy to type, and potentially memorable) passwords and password reuse (probably the single best way to get compromised). (I ha

Your proposal: * Encourages bad (easy to type, and potentially memorable) passwords and password reuse (probably the single best way to get compromised). (I have several hundreds of unique passwords.) * Makes phishing easier. (People are bad at consistently checking the URL bar correctly char for char and every time.) * Is inconvenient. * Can be done with any existing password manager. * About shoulder looking... I don't know about you, but I frequently need my passwords at work when colleagues are watching, or when I'm sharing my screen in a (often recorded) conference call.