To be clear, by "current working directory", I mean the directory returned by os.getcwd(), not the directory where the script is located. This is what I think the problem is:
1. One might want to run utility programs from arbitrary working directories, for example running "ls" in another user's directory (the example I gave in my first post), with "ls" being the utility program in this example.
2. One might want to implement such utility programs in Python, which is the case with e.g. "ufw", "hg" and "smbinfo" (the examples I gave in my second post).
3. If the suggestion to load Python modules from the current working directory is implemented, and a utility program is implemented in Python as in (2) and one runs it with a current working directory controlled by another party as in (1), then that party is able to execute arbitrary code as the user running the utility program, resulting in privilege escalation.
To make this more concrete, let's say we reimplement "ls" in Python as "ls.py" and install it in /usr/bin. If we then (quite reasonably, I think?) use our "ls.py" as root to list the files in /tmp, which is writable by other users...
# cd /tmp/
# /usr/bin/ls.py
then, if Python loads code from ".venv" in the current working directory, whoever created "/tmp/.venv" is able to execute code as root.