Reveal password button on the login screen is unnecessary. It can be clicked accidentally and is confusing to the users. Related bug https://bugzilla.redhat.com/show_bug.cgi?id=1487169
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Personally, I believe that the reveal password feature should stay. There's an eye icon shown in the password field too IIRC(just checked my lock screen) and I'm puzzled how that can be confusing.
So the killer issue from your bug report is that there's no "eye" icon in your SDDM login. That definitely is a big problem and needs a solution.
But just removing the setting isn't really trying to address the actual bug at all, it's just avoiding it.
I have talked to other people who use sddm on other distros where eye icon is visible. Despite of the eye icon being visible in the password box, people accidentally click it and it takes some time before they realize it. I would prefer to remove it from the login screen.
We also have bug 387418. And we don't have kiosk restrictions in SDDM either.
Given the rationale for introducing it was very thin, in the first place. I'm going to merge this.
I'd like to revert it in the lock screen too.
If you're going to do this, may as well undo all of https://phabricator.kde.org/D3616 , and remove the reveal password button from the lockscreen too ? Or not... at least the eye icon works there (for me at least).