I'd like to know why as well. The inclusion of the fsync before the rename implies to me that the filesystem isn't expected to preserve order between write and rename. It could commit a rename before committing _past_ writes, which could leave your /etc/passwd broken after an outage at a certain time. I can't tell whether that's the case or not from cursory googling (everybody just talks about read-after-write consistency). Maybe it varies by filesystem?

The final sync is just there for durability, not atomicity, like you say.