Tim:
SELinux in permissive mode is *not* secure. You're using the computer in an insecure mode, and all SELinux is doing is logging the things that it would have stopped.
Ian Malone:
I have actually once seen permissive mode preventing login, IIRC this was something to do with PackageKit doing its own context based checks.
Yes, though that's a fault condition. Permissive mode isn't supposed to stop anything.