Why is PAM the default authentication system?
Security, pure and simple. PAM is the most secure (or securable) of the available authentication systems. Many of the issues and configuration hints for PAM are contained in README.PAM which is bundled with the server source and in the various packaged builds. To use /etc/passwd manual compilation will be required with the configure script being run with the –without-pam flag. Unless the PAM subsystem is properly configured authentication will fail.