This was not at all how Unices worked, of course, which is likely why it never happened. On Unices it would have needed some sort of shared process credentials structure that could be augmented in place by a privileged process. On the Hurd, it would have required an extra method implemented by the auth server.
On my machines, login is not run any more. It's just a PAM client that provides a very dumb paper-compatible cooked mode terminal user interface, after all. I thought for a long time about writing a PAM client that had a better full screen TUI interface that assumed (gasp!) video terminals. So eventually I did just that.