* Doesn't scale. Having passwords in a plain text file is not a scalable solution for users directory. Can probably go up to a hundred users, but not much more.
* In computer clusters you want user identity to "stick" to the user when they use multiple machines, containers etc. That's why you have LDAP... but it doesn't help all that much because user id is encoded into the file system (huge mistake...) which makes it very difficult to contain users to things they should control. If your only mechanism was the /etc/passwd, it would mean you'd have to constantly synchronize this file across all those machines and containers you have.
* Doesn't scale. Having passwords in a plain text file is not a scalable solution for users directory. Can probably go up to a hundred users, but not much more.
* In computer clusters you want user identity to "stick" to the user when they use multiple machines, containers etc. That's why you have LDAP... but it doesn't help all that much because user id is encoded into the file system (huge mistake...) which makes it very difficult to contain users to things they should control. If your only mechanism was the /etc/passwd, it would mean you'd have to constantly synchronize this file across all those machines and containers you have.