Not that other means of accessing the passwords aren't worth considering, but in the real world, it takes a lot more for someone to actually coerce your password from you than to use unencrypted storage.
I generally like xkcd, but this is a harmful trivialization of the value of encryption. In the real world, anything that isn't encrypted is negligent as hell. There's no valid reason not to do it, with maybe the exception of a thumb drive you're sharing across a computers you don't control and are clearly aware is not secure.
They could have not given you root access and forced you to install your own OS for it to manage things that aren't on Steam. They could have locked the bootloader and refused to install anything they didn't sign.
Neither would violate the license provided they made the source available.
It means the core OS is isolated from all the functionality in a way that allows you to modularly add all the functionality on top of it in a reproducible, robust way.
In theory. I haven't actually dug into any of them personally.
It's a 2D platformer. Technology is no longer the limitation.
That's the reason the value proposition is so bad, too. It's not that there's anything inherently wrong with any of the 2D Mario (or the rest of their 2d side scroller catalogue). It's that they're charging full AAA game price for content any indie can match at everything but the specific IP (and many do better).
Some of their ideology helps their games last the test of time reasonably well, and they're the biggest publisher that's so heavy in 2D side scrolling stuff, but the reality is that it's now so easy for a solo dev to publish in an extremely polished format that there's very little they could do that would justify their price point.