Although I "think" I understand it I need some clarity. With PURE Restful authentication, things do get a bit unwieldy and using forms helps a lot with the UI of the application (i.e., get to have separate login page, forgot password links, easier logout? etc.,)
Now Forms come along and some folks say "not restful" - what is "not restful" about them? Is it that there is no corresponding login resource so to speak? Or does it force something else that I'm missing?
Note: If ones create sessions with them, that's a different matter altogether. I'm more keen on know "why" are they branded as restful? Just googling for "Form based authentication vs restful authentication" throws up quite a few hits.
One could use these "forms" to authenticate and pass on tokens for the application to store in cookies etc., which I feel is entirely restful (assuming cryptographic security etc.,)...
There is nothing wrong with sending your credentials, perhaps through a form, for authentication. The problem is most Form based systems rely on sessions, thus requiring you to only log in "once".
Sessions are server state, thus violating the stateless constraint of a REST architecture.
If you have to send the credentials each time, you can either include them in the payload (i.e. using a form), or you can use the HTTP Authorization header.
If you include them in the payload, you can include them in the body, but only for a POST or PUT, and not a GET or DELETE (since they don't have bodies).
If you include them in the URL as part of the query parameters, then the URL is no longer necessarily representing the actual resource. One of the other tenets is that the URL matches the resource. Adding out of band information (such as credentials) within the query parameters muddies that constraint up a bit.
So, for a REST system over HTTP, you're better to use the existing HTTP Authorization mechanism than working out something else. You could also use client specific SSL certs as well, that works fine also.