Passwords make for terrible security. Non-computer folk just don't want to devote the necessary headspace required to do it right. Hell, I handle this stuff for other people all the time, generate on average a few new random passwords of varying lengths every day, have memorized tons of the buggers -- including some rather ugly ones -- and I'm still not doing it right.
No, I don't know what would be better than passwords.
But I'm looking forward to it when it shows up.