I'm glad to see this change. This was already the case for GUI password prompts, and I'm happy to see terminals following suit.
This wasn't someone seeing Chesterton's fence and deciding to knock it down thoughtlessly. This is a change that someone can in fact think all the way through and say "yeah, this should be changed, it's an improvement and doesn't cause any meaningful reduction in security".
So giving others a way to know the length of your password isn’t a meaningful reduction of security?