1) Allow effective collaboration. For example, passwords will allow only authorized persons to make administrative changes to the calendar (post events, etc.), to create newsletters on-line, administer activities, etc.
2) Protect Privacy. Very often, anyone can access private information at some amateur neighborhood sites subjecting people to everything from annoying spam to criminal activity.
3) It is NOT being formed to prevent access to information, and there will continue to be an abundance of information available on-line to anyone who comes to the site. And, of course, information can always be made public, but it is impossible to do this in reverse - once it's out there, it's "out there"!