Where would your private key be stored in this idea? Would it be held by your NIP-05 provider and the client would call out to them whenever it needs an event signed by you?

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You would still hold the private key. You would just use the NIP-05 as your login credential.

I guess I am confused. Logging into what? A client? Doesn't matter unless that client somehow has access to your private key for signing through that login.