Yes. That's basically what I was getting at. : )

For a single account the password is all you need. The wallet should still provide a backup if requested though. It should never simply be blank or empty. That is a risk for the user. If he is expecting there to be a backup and there is nothing, that is bad.

We if don't want to provide backup options for single accounts, we should remove it from the UI. Assuming we are talking about Cloud login.

This Cloud login vs Local login design is completely unnecessary and makes everything more complicated. It's a bad design.