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RE: REMINDER: STEEMIT Scripts available to "Hide/Show ReSTEEMS", enable your "Post Vote Slider", and to "Vote Past Payout"!
It would be fairly trivial for an update to the extension to intercept your password as you logged in.
You're right, that's why I suggested people to install the extension by downloading the project code from github and install that instead of the official chrome extension. The chrome extension is auto updating when a new version is released. Of course, the downside is that every time a new versions comes out, you need to install it manually. I didn't even want to publish the extension on chrome extension store, but lot of people asked me to do that, so I did it!
I guess now anyone has the ability to choose the way they prefer!
Kudos to you for offering it that way. You might want to suggest that people login to Steemit with only their Posting Key.