One of the things that I've come to believe in is that everything, basically without exception, should be able to rate-limit authentication failures, at least when you're authenticating people. Things don't have to make this rate-limiting mandatory, but it should be possible. I'm okay with basic per-IP or so rate limiting, although it would be great if systems could do better and be able to limit differently based on different criteria, such as whether the target login exists or not, or is different from the last attempt, or both.

(You can interpret 'sources' broadly here, if you want to; perhaps you should be able to ratelimit authentication by target login, not just by source IP. Or ratelimit authentication attempts to nonexistent logins. Exim has an interesting idea of a ratelimit 'key', which is normally the source IP in string form but which you can make be almost anything, which is quite flexible.)

I have come to feel that there are two reasons for this. The first reason, the obvious one, is that the Internet is full of brute force bulk attackers and if you don't put in rate-limits, you're donating CPU cycles and RAM to them (even if they have no chance of success and will always fail, for example because you require MFA after basic password authentication succeeds). This is one of the useful things that moving your services to non-standard ports helps with; you're not necessarily any more secure against a dedicated attacker, but you've stopped donating CPU cycles to the attackers that only poke the default port.

The second reason is that there are some number of people out there who will put a user name and a password (or the equivalent in the form of some kind of bearer token) into the configuration of some client program and then forget about it. Some of the programs these people are using will retry failed authentications incessantly, often as fast as you'll allow them. Even if the people check the results of the authentication initially (for example, because they want to get their IMAP mail), they may not keep doing so and so their program may keep trying incessantly even after events like their password changing or their account being closed (something that we've seen fairly vividly with IMAP clients). Without rate-limits, these programs have very little limits on their blind behavior; with rate limits, you can either slow them down (perhaps drastically) or maybe even provoke error messages that get the person's attention.

Unless you like potentially seeing your authentication attempts per second trending up endlessly, you want to have some way to cut these bad sources off, or more exactly make their incessant attempts inexpensive for you. The simple, broad answer is rate limiting.

(Actually getting rate limiting implemented is somewhat tricky, which in my view is one reason it's uncommon (at least as an integrated feature, instead of eg fail2ban). But that's another entry.)

PS: Having rate limits on failed authentications is also reassuring, at least for me.