Passphrases, when strong enough, are fine when they are not traversing a medium that can be observed by a third party. They're not recommended for authenticating a secure connection over a network, but they’re fine for unlocking a much longer secret that cannot be cracked via guessing, rainbow tables, or other well known means. Hell, most people unlock their phones with a 4 digit passcode, and their computers with a passphrase.
> when they are not traversing a medium that can be observed by a third party
Isn't that why all those security experts are pushing for SSL everywhere and 30 second certificate expiration? To make the medium unobservable by a third party?
If you believe them, passphrases should be okay over fiber you don't control too.