The curious thing about this "solution" is that it's pretty fundamentally broken. If you're authenticating to any important site by typing a username/password into a computer you don't "trust", you're doing it wrong.
The subset of computers in between "people I don't trust also use this computer" and "this computer could easily have had a key logger Or root kit installed" must be vanishingly small.
I don't disagree, but if you run a site of any size you will quickly realize that users will do all sorts of crazy things against the best practices for security. One of the top (if not the top) search requests Google gets is "facebook login". What do you want to bet that a lot of those requests are coming from a shared computer?