This is 100% that case. Basically every form (like this very one I'm typing in) is held in userspace memory un-encrypted. And yet lawyers and doctors and CIA operatives all use forms to type very sensitive stuff in.

It would be stupid, wasteful, and overly-complex to encrypt forms just in case some malicious process somehow got ring0 access. In that case, a keylogger is likely more useful anyway. And you're fucked even if you are encrypting stuff (as keys are likely also somewhere in memory[1] and they need to be—gasp—unencrypted). There's no free lunch.

Stupid Twitter thread meant to rage-bait for engagement.

[1] They could also be on disk or on some peripheral, but still fully readable by a motivated-enough hacker.