Really good point. Even better, I'd really like these cookies to be digitally signed (like Rails' session cookies are by default), so that they're unforgeable.
Seems like it wouldn't be too terribly hard to add to nginx...hmm... ;)
What, in particular, is problematic about them? Do you mean their particular implementation, the fact that they aren't also encrypted, or the general "password equivalent in a cookie" concept overall?
Yeah, the one ring to rule them all problem. One bad employee, or one of the many rails zero-day issues, potentially compromises the site indefinitely for all eternity.
Seems like it wouldn't be too terribly hard to add to nginx...hmm... ;)