Did you actually read the article? It's not about giving kids a password, it's about the previous iTunes/App Store set up that allowed further purchases within a fifteen minute time frame, including in-app purchases. Kids don't need a password for that. Have dad download the game, start playing, and stumble on an in-app purchase - and then there's nothing blocking the kid from just going ahead with the purchase. I doubt the kids even realized it cost anything. Now you can't do that, it forces you to input your password again.
Apple should have seen this coming. In-app purchases were ripe for this kind of problem from the start. I won't say they were hoping to reap the rewards of accidental purchases, but surely they saw the problem early and could have updated iOS to stop this long ago. I do think, however, that these lawsuits are pretty frivolous - we're talking a couple hundred dollars and a problem that has been solved. There is no real reason to go ahead with this other than greed, IMO.
You seem to be the only commenter in this thread capable of reading comprehension. +1 to you for recognizing the 15 minute window being the problem, and now being fixed.
Dad could have logged out of the app store BEFORE giving the device to the kids. It's his fault he didn't treat his credit card with more respect. When you hand somebody a device that stores your credit card info, it's the same as handing over your credit card. Sorry he had to find out the hard way.
This is inaccurate. Once you'd entered your password to install a free app there was no way to log out to disallow in app purchases, even rebooting one's phone left the authorization for in-app purchases active for 15 minutes.