[jwl]

I can see some logic behind number 3 of having your password in the clipboard. It could lead to users pasting their password somewhere else where it was not intended. However, if you have malware on your machine that can read your clipboard, it can also simply read your keystrokes anyway.

[MyNameIsFred]

I haven't done Windows development for a long time, but I think that this may be an overstatement, at least on that platform.

You need to have cursor focus to receive key events, right?

The clipboard, by contrast, can be continually monitored, while playing completely "by the rules", right?