I think iTunes is the only place where I can skip a password and choose not too, out of fear of buying things by accident. I could go or a confirmation dialog instead, though.
Yeah, but only once per 10min or so, and if you've just done an update or any of a range of other activities, that password is still valid. Once the password is in, no confirmation.
And yeah, agreed, skipping the password box is just dangerous - WAY too easy to spend money there.