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I don't follow your logic about the breach risk. If you're using unique passwords per service (and you really should) then I would expect any breach that involved passwords would have less of an effect. If there is a breach with a centralized single sign on service then every other dependent service is also affected.

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There's a big difference between what people should do, and what people actually do. Research consistently shows that a large percentage of people reuse passwords across many sites.

[1] http://www.jbonneau.com/doc/DBCBW14-NDSS-tangled_web.pdf

Sure, but I'd bet that people who have cloud services accounts are much more likely to be better at password security than the general public, as a group.

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