consequence of hardware wallet, wallet password being compromised
when you create a monero wallet using a hardware wallet, the HW says they are exporting a watch only account. The monero gui also asks for a wallet password and stores something in your file system. If your wallet password is compromised and this file is stolen what could an attacker achieve?
could they permanently monitor every transaction to send and receive from that point or only up to that point when the file was stolen (remotely)?
I am assuming this will severely compromise your privacy
if losing this file can result in you permanently using your privacy even into the future, it could force you to move your funds to a new wallet. Will it be possible to prevent storing this information on your computer – eg have a limited wallet which shows your balance and no transaction history?
eg confirmed balance and pending balance?