[gweinberg]

Conversely, people who want to pick up passwords by shoulder-surfing can probably do it whether the passwords are masked or not.

[MLR]

I don't know about you but I find it exceptionally hard to read passwords from people typing, even slow typers, reading an experienced typists would be nigh on impossible for me.

[notahacker]

That still leaves a large number of people with absolutely no intention of shoulder-surfing who can't help realizing the screen they've been asked to watch is displaying something that might come in handy in future

[deckiedan]

Good point.