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I can confirm that they're still doing this. I recently had a conversation with their support staff about it and I don't think they'll be changing it any time soon. I like Dreamhost, but if they don't change this I'll probably bail.

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Can you explain why you would leave over that? As long as you are aware of it and use a unique password how does it impact you? They would have to have a very specific and unnoticed breach that gets database and key.

Is it worry that they are lax in security elsewhere?

I'm not one such person (although I've never used DH's services for other reasons, even while I was employed by such), but I could imagine a reasonable person saying "if they take part in bad practice X of which I know, what other bad practices might they take part in of which I don't know?"

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