@leprechaun the problem is, we must have a trusted third party service for managing the auth process, so to avoid dangerous external apps to be allowed on requesting the user credentials. Who's better than Steem itself? The first version of SteemConnect is a Busy.org product. SteemConnect V2 is managed also by Steem itself.
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I am a programmer and know steemjs and steem/python. Most people already trust Steemit js and backend code to not to save the keys on the server in an irresponsible way. I guess it does not even go to the server. It does not need to. If I can point to @ned saying they manage SC2 I think I can put users at ease. And yes users don't typically understand the keys never go to the servers of Steemfiles.com.