Sounds pretty scary.
However, with security concerns you should always ask what assets there are that need to be protected. I can think of two: your reputation as a racer, and your LFS license. The reputation has no economic value, but the LFS license does. Suppose someone is able to phish your OpenID identity, and use that to unlock S2. Then he can do that on a larger scale, and sell the stolen game-passwords. Or he could play LFS with a stolen license, go on a wrecking spree, and laugh at the bans that follow. That would do real damage, both to the people whose identity is stolen, and to LFS itself.
I agree that single sign-on across LFS-related websites would be nice, but I think two conditions must apply:
- The OpenID identity should not be sufficient to gain access to the sim.
- Users should be warned to keep their LFS identity separate from other OpenID-based identities they might have.