This flickr blog post discusses the thought behind their latest improvements to the people selector autocomplete.
One problem they had to overcome was how to parse and otherwise handle so much data (i.e., all your contacts) client-side. They tried getting XML and JSON via AJAX, but found it too slow. They then had this to say about loading the data via a dynamically generated script tag (with callback function):
JSON and Dynamic Script Tags: Fast but Insecure
Working with the theory that large string manipulation was the problem with the last approach, we switched from using Ajax to instead fetching the data using a dynamically generated script tag. This means that the contact data was never treated as string, and was instead executed as soon as it was downloaded, just like any other JavaScript file. The difference in performance was shocking: 89ms to parse 10,000 contacts (a reduction of 3 orders of magnitude), while the smallest case of 172 contacts only took 6ms. The parse time per contact actually decreased the larger the list became. This approach looked perfect, except for one thing: in order for this JSON to be executed, we had to wrap it in a callback method. Since it’s executable code, any website in the world could use the same approach to download a Flickr member’s contact list. This was a deal breaker. (emphasis mine)
Could someone please go into the exact security risk here (perhaps with a sample exploit)? How is loading a given file via the "src" attribute in a script tag different from loading that file via an AJAX call?