Use of Passwords for PC

I read somewhere that the use of passwords for log-on to individual pc or pc in a network is not as clear cut as I thought.

Obviously a password for log-on does prevent authorised access to the pc by people physically present. However the article said that with respect to a network of "physically secure pc", it is better not to use any passwords. Supposedly without the use of log-on passwords, threats via the ethernet can at best only access local user accounts but not access any admin functions. So the recommendation was not to use a password provided physical (local) security was not an issue.

Is this correct and can someone provide a bit more info on this.

 

Hi, was it this article? http://blogs.msdn.com/aaron_margosis/archive/2004/06/17/158806.aspx

I'm not sure exactly what it means, but I remember having it in my favorites . Perhaps someone can provide a more detailed explanation.

 

Innerpeace, yes I think this was the article I stumbled across.
Just like you would like to have some "second opinion" on this statement as I certainly was surprised to read this.