It is never a bad thing to not blindly trust software, I tend to be pretty much paranoid with that myself. But yes, the open source aspect of Kaldran's updater does probably make you look stupid if like the person the OP mentioned you make accusations that everybody can easily show to not be true by looking at the source.
I'm not paranoid about the auto login textfile of ProfitUI however. I tend to think that if your system is compromised to the point that you caught an eq2 specific trojan that reads that file and is able to send the data out of your system then the bad guys could just as easily install a keylogger and thus target all eq2 users (as well as your login data for other services), not just those using specific custom UIs. Also I think the latter case is much more likely. So always keep your system secure.
Please note however that a malicious third party UI mod would easily be able to grab your login data and send it to a third party. I am not aware of such a malicious mod but the risk exists, so don't just blindly install mods you found somewhere on the web.
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