I am pleased to discover the new ability of Moodle to save a course as LTI. I think that such a standard is very usefull and enable new partnership possibilities.
Howerver I am wondering myself : who use LTI (except Moodle) ?
It can be other LMS or some "known sites" (without a LMS behind).
About logins and passwords : the student needs to have an account an the provider platform (plus his account on the consumer platform) ?
When Moodle is used as an LTI tool provider (using the new 3.1 feature Publish as LTI tool) and remote users on a different site access selected courses and activities on your site, accounts are created automatically for them. They don't need to log in on your site (the provider platform).