When no security is needed. ProtectedStorage is merely responsible for storing and return cryptographic keys from/to a user, taking care that no other user can get them and that they're not accidentially stored in an unsecure localation (f.e. memory paged on the disk). The user and all the programs in his context are considered as trusted, and concepts of separation would be pretty useless.
Same holds for services which are actively manipulating the desktop, f.e. Superior SU.