There is a cost to installing security, particularly at the higher levels of FIPS certification. Let no one dispute that.

But I consider the idea of allowing your passwords to flow over the wire in plaintext and allowing other information to flow in plaintext to be quite ridiculous.

The author suggests a false dichotomy: 2048bit encryption (which algorithm? he doesn't say) or none.

There are a lot of complexities here that can be tuned for your business and its requirements. At least, if you can hire a competent security guy.