We use hiera-eyaml... This let's us selectively encrypt keys (passwords) and let everything else remain plaintext.
We use git and have very little concern as long as we keep our private key secure.
We also publish our public key so others can encrypt sensitive data themselves. Because we have several teams that have ownership over various pieces of sensitive information this makes managing secrets 'easy'.
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I was thinking about a situation like this -*) Puppet designer decides to place all credentials in a single database (encrypted Hiera).*) developers clone the version controlled copy of it all over the place, e.g. to their laptops, that random box that everyone logs into.*) version controlled copy then potentially sits next to copies of the keys used to decipher it.*) some lazy developer decides not to use a passphrase in his key.*) laptop then gets hacked, lost or stolen, etc.Perhaps I'm being paranoid?