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You have to completely log out of steam, the feature could be added onto like most popular social media platforms that let you swap accounts on the fly. That was a flawed reply by you.
No need to save all credentials, sounds like a good security problem that doesn't need to be there.
The security risks are only minimal, all I could think of would be is the saving of accounts into a local file that could be hijacked. Encryption could help stop this, in addition passwords dont have to be saved just a list that automatically prompts you to change account without fulling logging out and having to type another username. It's just QOL, it doesn't need to save password, although it would be nice to have the option. This is just the feature being expanded upon like we see in many web platforms or SPAs (instagram, gmail, facebook, etc) anything that supports hot swapping accounts makes the transition as seemless and effortless as possible. As it goes now on steam I have to log out completely, and type the information in again instead of a simple drop down that lets me select other added accounts and enter password and authenticator and instantly swap (or as seemless as Instagram is where you just hold, click next account and instantly swap) whereas they do not store the information on the device just use sessions to maintain the instance.
And that is all that needed to be said to show that it isn't the greatest of suggestions. Why apply a security risk because people are too lazy to type?
Well, you literally said yourself that there's a security risk (see your previous quote). There is also the obvious problem of people essentially letting hijackers on their accounts, which if this idea were implemented, valve would easily receive more tickets regarding said hijacked accounts. There is really more bad than good that could come from this.