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NIST proposes barring some of the most nonsensical password rules
(arstechnica.com)
This is a most excellent place for technology news and articles.
The only justifiable reason I can see to have a length limit is because longer passwords would take more time to process and they don't want to deal with that.
Although it would only be on the order of a couple of extra microseconds and I'm not sure how much difference it would really make. But even on cyber security forums the max password length is 64 characters.
But it really doesn't, unless you're sending megabytes of text or something. Industry standard password algorithms run the hash a lot of times, and your entry will only impact the first iteration.
I usually set mine to 256 characters to prevent DOS attacks, and also so I don't need to update it ever. Most of my passwords are actually around 20-30 characters in length (I pick a random length in the slider on my password manager), because I don't want to be there all day if I ever need to manually enter it (looking at you stupid smart TV...).
That’s exactly what someone malicious would do though, either in a single password submission or DOS via the password maximum repeatedly. IMO there is no functional security difference between a 64 and a 256 character password, so the NIST 64 character max is reasonable.