i wouldn’t say wrong… it’s SSO. i have multiple servers on my plex account, and i much prefer to have a single login for all of them than different for every server. it also allows things like login with plex for overseer etc
it’s a trade-off for sure, but i’d argue a very worthwhile one
perhaps you could argue that you should be able to run the auth server yourself, and sure… maybe… but i think that’s the worst of both worlds