OK that seems like the sort of situation you'd want some sort of privacy controls in but this bug is about it getting ignored when you type it into the URL bar yourself right?
The ipad browser pops up a red phishing warning when you access a bookmark(!) that has credentials in the URL.
This is royally annoying because the same browser can't save these credentials otherwise.
So for sites using simple/digest-auth you're given the choice
between typing in your password every time, or getting that stupid warning dialog every time.
