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While I agree with you, I'm guessing that the vast majority of the users of this feature wouldn't have SSL without it, so it's better in some sense?

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I'd argue it's worse than no SSL, at least then I have a signal from my browser that I shouldn't be submitting sensitive information.

Of course they would, soon after they would start getting questions about that red lock next to their domain name. CloudFlare is here preventing browsers to do the right thing.

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