That's irrelevant though, and you're just picking a fight. I was responding to Joe_Dragon's completely inane objection to Windows 8 from a business standpoint, see his title: "that will be a death note to enterprise use". No, it won't be, and I explained why.
Do you want to engage on a debate on Windows Live logins as well? Because you should know before you start that the Windows Live login has minimum security requirements, doesn't appear to store the Windows Live password locally, and appears to follow some pretty damn good security practices. Now, I haven't fully verified all of these claims, but the login process for Windows Live login appears to use local passwords and certificates to verify the local account password against The Cloud(tm) when available. This is actually an astoundingly good process, as I don't think the hash of the Windows Live password is ever stored on the computer, rather, it can be used to access the local password, but I don't think physical access to a Windows 8 machine can possibly give you access to a user's Windows Live credentials. You can only gain access to local, unencrypted data.
There are bits of this I haven't verified, but are based off hunches of exploring the system and poking and prodding it. I haven't disassembled the login routines to verify what I think is happening is the actual process, but it appears that Microsoft has very much followed good security practices here. I was extremely impressed to notice that enabling Windows Live login merely downloads a certificate to the user's local certificate store (encrypted by a local password) and that other mechanisms appear to be in place to mitigate security risks.