I dont see a reason why you want to enter the password into the address bar in case you don't want to save it
This statement implies that the address bar is made to remember information (aka, modify favorites), nothing else. To me, the address bar is a quick way to connect to your favorites with the OPTIONAL choice of modifying them on-the-fly. You should have the option of modifying those favorites from the address bar (by adding / removing information) or simply ignoring any changes. The dialog that appears after clicking "connect" (which requests username/password) should be completely removed, as it is excessive and asks for duplicate information.
I would never have thought to click "connect" until all information required to login successfully is entered into the login toolbar. You're actually asking for login information two times, when it should only be asking for it once. When you press the connect button, it should connect; not ask for my login a SECOND time. My proposal would be an increased security measure, cleaner, and seems like a pretty reasonable feature to add (It's also not very difficult to implement).
It's almost like this scenario:
Imagine, you're in Microsoft Word and you want to save your document. You go to "Save As..." and click "Save". A dialog appears asking you, "Are you sure you want to overwrite the existing file?" You click yes. Again, it pops up and says "Are you REALLY sure you want to overwrite this file?". At this point I would be annoyed because you're asking for the SAME INFORMATION a SECOND time. Same with the login info: If I can provide my username and password in the login toolbar, why would I want to have to specify this information a second time when I click connect? What if my account doesn't have a password? When a user clicks the connect button, they expect for it to connect. This is also a bit of a bug because this feature assumes you have a password, even when you may not. Just because your password is blank doesn't mean you have a password and are just not typing it in.
I hope you can see the point I'm making.
Thanks, take care.