I have automatic login enabled and I am not asked for a password when logging back into an account after logging out.
Jon are you sure you are not confusing logout/liogin with boot/reboot? I did not remember what you are describing to be the case in any version of OS X back to the Public Beta, but I decided to verify my memory.
On the three Macs in this room, all currently running OS X 10.7.2, if automatic login is enabled...
- if I log out of one account I have to enter a password to login to any other account on the system
- If I log out of the primary account, the one where automatic login, is enabled, I have to enter the password to log back in to that account.
- Automatic login only works when you boot or reboot and then it automatically logs in to the one account where automatic login has been enabled.