On boot if password is not entered in time, the user is sent to dracut recovery mode with some timeout errors on the screen.
I don't think it is a good idea to have such timeout. I can run the computer and go to take a cup of water or something and want to see the nice prompt when I return.
It makes sense to enter recovery mode after some number of failed attempts but IMO user needs to be asked if (s)he likes to enter recovery mode. I guess many user will not even know how to reboot the machine. If that is not possible, there should be some short info on screen what can user do in recovery mode and how to reboot.
*** This bug has been marked as a duplicate of bug 868421 ***