Yes, this is my second post on HA security but to my mind this is the only thing worth talking about at the moment.
Isn’t it about time that the !secrets file was encrypted in some way? Don’t ask me how, I don’t know and if you tell me it is not possible then I will have to accept that but having all these, err, secrets in plain text seems to me to be asking for trouble and in fact breaks the very first kindergarten rule of online security.
Use a keyring (as explained in the docs. No need for plain text passwords.
Use plain text passwords in a text file - it’s very obvious that you should protect this
Encrypt the passwords and allow Home Assistant to automatically decrypt them. How to decrypt them is going to be hard coded into Home Assistant and so about as effective as ROT13 - but people will think it’s secure, and so not protect them.
Home Assistant gives you the choice of either of the first two.
Not only has this been well discussed here, but it’s been discussed in depth on many mailing lists for many other products over the last couple of decades (and more). The options Home Assistant provides are the only responsible options.
For the sake of simplicity I’m going to close this thread - if you want to continue the discussion please use the one from last year.