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i think the official reason is oauth expiry but in practice oauth expiry on servers is so long it doesn’t seem necessary anymore

The simple answer is that atprotofans is an early technical preview where we’re trying out stuff. Long term we won’t need that app password bit.

thats a fair answer, from what i've learned while building out my own atproto oauth and client package is that app passwords, while invasive, are just easier for scheduled tasks, creating records or completing other actions on the behalf of the user while they're away from the site.

like you mentioned, great for experimenting quickly. and unless you are using a well developed library/package for atproto oauth, it is very annoying to set up. you wouldn't want to fail to create these records or delay them while you email the user, so app passwords ftw (until the site is matured)