The browser as the Virtual Directory GUI

I think most of the people will agree that the basic issue with the auto-form filling is storage and security of that storage. That is what makes the existing auto-fills a big no-no for "informed" users. So, till we have browsers that are developed with very good built-in data security through smartcard or encrypted USB support we can not go too far with the whole idea of identity storage on the client.
The client till that time will continue to make a good pitstop that will allow the end-user to controll what is going from the IDP/Identity Provider to Service Provider.

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