Linux stores plenty of passwords in clear text in /etc and $HOME and this is considered acceptable by most users. These same people also believe the TPM is a spy chip.
That's gonna be a big ol' [CITATION NEEDED] from me, dawg.
I have an alias set for when I'm working with opentofu:
`alias tfenter='sops exec-env secrets.yaml "/bin/bash"'`
I encrypt with openbao's transit engine and backup age key kept in a password manager, so no secrets live on disk.