No, he gets that there would be nothing stopping everyone to share everything all at once en mass thereby negating the need for cracking any server as someone from Omnicron could easily grant someone from Icarus full access to Omnicron servers by virtue of the fact that the Omnicron player does not need them and can pass the passdata off to the Icarus player and him to a Hakuza player and so on ad infinitum.
Yeah, I understood what he got.
Players don't get the passcodes to their own faction. They are just granted admin rights to them currently. That is proven by the fact that when you change factions you loose any admin rights you had to servers that you didn't break before attaining that server. I switch factions a lot

and did much testing to prove that theory. I was hoping that I could keep admin rights for the those servers upon switching. But that wasn't the case. I did keep admin rights to the servers that I did hack prior to switching to the faction, though.
I was thinking that a player would only be able to hand out the passwords to other players (hopefully they'd be doing it to their own group) for those that they personally cracked themselves.
As part of this. The system could cause password resets much quicker instead of only at the half-way-point. Maybe even every few days. This would encourage players to cooperate with their group much more. It would also allow players to complete the 'crack a secret server' mission more often.