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Or if that's related to "less government". Or "freedom works", which in this context reads ironic.

That's not terribly ironic. Contrary to the indignant fanciful writings of tech blog writers, there's no evidence that this is any kind of a widespread practice. Why is anyone's guess, although practicality, exposure to existing laws and basic human decency might all be factors.

But no, let's get a few more redundant and/or downright pointless laws on the books, we're not spending anywhere near enough on lawyers yet.

The reason for why it is not a widespread practice is probably because you scare off way too many potential employees. I know I would consider ending the interview instantly if asked to hand over any passwords. And for sure I would not take any job there.

Scholarships and universities is where there might be a case for the law. I would like to see some real examples first though where current law does not already stops this for scholarships/universities.

I can't give any specific examples, however I do remember reading at some universities, the athletes have to give up their passwords/usernames for social media sites or they risk getting kicked off the team and losing their scholarships.

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