Password Managers improve real-world security, and the IE team felt it was important to put users in control. Users rely on their password manager to permit them to comfortably use strong passwords. Password managers encourage strong, unique password creation per site, but unique, strong passwords are often difficult to remember and type on touch devices. If the browser doesn't offer to autocomplete a password, the user assumes that the browser is broken. The user will then either use another browser that ignores the attribute, or install a password manager plugin that ignores it.I'm not sure I agree. Moving to another browser would not have worked since they all honored the attribute until recently. It is also stated plainly that users could use a password manager plugin to overcome the restriction.
And here's a snippet from a message posted by the Chrome team with their reasoning:
We believe that the current respect for autocomplete='off' for passwords is, in fact, harming the security of users by making browser password managers significantly less useful than they should be, thus discouraging their adoption, making it difficult for users to generate, store, and use more complex or (preferably) random passwords.Maybe I don't understand the decisions because I don't use a password manager. Either way, it is good that all browsers continue to honor autocomplete="off" for non-password inputs (type="text") so that sensitive data such as credit card numbers can be protected.