For security it's better, but in many cases if you're not writing security-oriented software it can be worse from a user perspective. I remember the first job I had over 20 years ago was working on VoD streaming and one of the "tricks" to improve stability was mmap'ing the 0 page so that NULL dereferences wouldn't immediately segfault. Ugly as hell but when you were working with all sorts of more or less well coded media codecs and security wasn't a concern at all (worst case scenario the user would stream movies without paying) it made some amount of sense.

I suspect that Microsoft has the same history: the entire Windows platform was built with single-user PCs in mind, mostly only dealing with trusted input. The users were also expected to be tech-illiterate for the most part and unable to troubleshoot deep technical issues.

More recently I'm still working on video transmission, but on the production side this time. I also originally adopted the mentality that I should crash early if some unexpected situation was encountered, but I ended up walking that back a lot, because having a critical piece of live media production reboot mid FIFA worldcup final is generally Not Great. Degraded functionality is usually preferable. I still crash early in dev builds, but the production code just logs an error and continues if at all possible.

That said, I definitely agree with you for something like password handling. In this case, I do think it's warranted to crash the program without survivors if something is amiss.