It's not for me. My password manager has a (undisclosed large number) letter password. A 5 digit pin key is much easier.
Regarding active key use, I just transferred some HIVE and had to enter my active key. Is the transaction singed on my machine such that the active key isn't sent over the net? I'd hope so.
Yep, this is not changed. Keys are never sent over the network.
Also took note of the feedback. I'll talk to @jarvie so we can define if we need to do some adjustments ;)