Only if length is known. Which is true now. So it opens the gates to try passwords of specific known length.
For ascii at 95 printable chars you get 0.9894736842. Makes intuitive sense as the "weight" of each digit increases, taking away a digit matters less to the total combos.
Maybe I'll start using one Japanese Kanji to confuse would be hackers! They could spend hours trying to brute force it while wondering why they can't crack my one letter password they saw in my terminal prompt. ;)
In the early days we all shared computers. People would often stand behind you waiting to use it. It might even not have a screen, just a teletype, so there would be a hard copy of everything you entered. We probably didn't have account lockout controls either. Knowing the length of a password (which did not tend to be long) could be a critical bit of info to reduce a brute force attack.
Nowadays, not so much I think. And if you are paranoid about it, you can still set it back to the silent behaviour.
Or, we could just look at the keyboard as they type and gain a lot more information.
In an absolute sense not showing anything is safer. But it never really matters and just acts as a paper cut for all.
Have you ever watched a fast touch typist, someone that does over 100 words per minute? Someone who might be using an keyboard layout that you're not familiar with? When the full password is entered in less than a second it can be very difficult to discern what they typed unless you're actually recording with video.
But sure, if you're watching someone who types with one finger. Yes, I can see that.
Besides, observe that several times and you might get close. Look at the stars several times and learn nothing beyond what you learned the first time.
This whole type of attack hinges on the user using weak passwords with predictable elements in any case.