Closing as invalid, in Lucid at least, sftp (among others) are mounted using
gvfs and gnome-open-terminal simply opens ~/.gvfs/sharename and there is no
need for entering a password.
Should you however experience this bug in Lucid, please feel free to change
back to new.
If this is a big problem for you in a previous release of Ubuntu please
consider using the workaround suggested in comment #2.
see here for instructions: http://www.debuntu.org/ssh-key-based-authentication
** Changed in: nautilus-open-terminal (Ubuntu)
Status: New => Invalid
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open-terminal needs password entered on sftp
https://bugs.launchpad.net/bugs/221962
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