Earlier quoted context omitted.
The nice thing about OAuth on a native client is that it allows a non-evil client the option of not storing the cleartext password in a recoverable way on the client. This way if the device on which the native client lives is compromised, the attacker won't be able to obtain the cleartext password, unless it was compromised during the OAuth login process. Sure, the attacker will get the token, but they won't be able…
> The nice thing about OAuth on a native client is that it allows a non-evil client the option of not storing the cleartext password in a recoverable way on the client. Why does this matter? If you compromise somebody's desktop or phone, you're in an extremely privileged permission. This means that you can spy on their authentication processes while they are occurring . Including processes that occur on the web. You…
But if the attacker only has access to the filesystem, then it certainly matters whether the filesystem contains enough information to impersonate a user.
And there are things that people do to desktops that allow other people to access their filesystems. Things like cloud backup, sending your computer in for repairs, or selling an old hard drive. Sure, you should remove the hard drive or wipe it before you do any of these things, but a lot of people...don't. There are plenty of stories about that situation floating around the interwebs, but this comment is long enough...