[andrewstuart2]

Only a false sense of security.

Since the page is loaded as plain text, it can also be altered by anyone with network access between the server and the user. Javascript can be very trivially injected that simply sends each keydown event to the server, giving away the user's "hidden" password.

So even if the code you wrote doesn't ever send the password input to the server, that doesn't mean code hasn't been injected by some third party by the time it gets to your customer/user.