It’s AirDrop, not Handoff. The latter is used by ONE user to transfer control or data between multiple devices that are already in their control (and logged into).
AirDrop allows TWO different users logged into TWO devices under their own control to share data. Hence the need for authentication.
And the attack vector is super specific... a black hat *physically nearby* has to try to grab your data while you initiate the AirDrops (and I would guess most AirDrops are small things: a contact card, a photo, a doc... all which take seconds to transfer), and THEN brute force the hashes... for what? A bit of stolen PII?
Yes, it’s *possible* for someone to do this... but *probable*? Naahh. Which is why Apple hasn’t prioritized it. In risk management you have to prioritize the risks by probability and impact... this one is pretty low on both counts.