As opposed to "Oh, they want a password? I guess I'll use the same one I use for every other website."

I agree that the business makes the decision, growth is the top priority and friction reduces growth, but in reality this is how most of the world already works. If you rent a hotel room you don't get to provide your own key and if you lose their key then you must prove who you are to get another one issued.

In the end there must be some compromise between growth and responsibility. If a company cannot grow responsibly then we end up with Facebook all over again.