Microsoft to Abandon Passwords in Longhorn?

Vnunet has an intriguing article quoting a Microsoft representative as saying that Longhorn will rely on some unspecified form of two factor authentication, rather than passwords.

The scheme is not detailed at all, but right away it raises questions like who will provide the database for authentication? Microsoft? I can hear the howls now from many quarters about entrusting MS with one's identity. The article makes the point (and I concur) that such authentication, whatever form it takes, has to be openly held and accessible from any and everywhere, lest myriad problems arise.

Still; passwords are rarely used well and something has to change. At least this will begin a (hopefully) constructive debate on the subject.

Jack