That it would force people to write down the passwords in sticky notes and very cleverly paste it on the underside of the keyboard is not realized by the bozos, or if it did, it did not bother them.
People keep trotting this out as if it was some horrible, boogeyman security practice.
Quite frankly, it's probably better than any other security solution. After all, humans have spent thousands of years working on physical locks, while electronic ones (like passwords) have only been around for a few decades. And, physical security is another legitimate layer of security. Sure somebody can break into your work place and grab your passwords. But they'd actually have to be physically there. And the cops are much more likely (and able) to respond to a physical break-in than to some virtual intruder entering virtual storage.
The worst thing that could happen would be to electronically store the passwords in plain text. You get neither physical nor electronic security. That should be discouraged.