well the thing is you would not change the settings very often, or ever,
maybe the settings are set when the address is created, cannot be changed
even if there was a password of some sort you wouldn't need it on your computer

i think security and redundancy go together quite well

besides the security, i think there are heaps of cool things you can do with that

edit - i for one would like to be less reliant on cold storage, it just makes things inconvenient.
this is like a middle ground between cold storage