Rando site with rando signup has a non zero chance of being stupid enough to store the passwords in clear text. And I've had quite a few letters in the mail about disclosure that our accounts were hacked, were sorry, boo hoo for us, nuttin for you. But unless the site is completely bonk, I always make rando passwords with my special secret rando key maker which is called pwgen.
I sleep easy knowing that all my secrets and my os is made by all organic free range programmers who never get mad they are being taken for a ride. But for a good cause you see. Software freedom is very important. Until that day bills need to be paid and you see, sometimes ingredients to computer food are not on the box.
Oh hopefully I can tack on one last thing I think is just hard to ignore. Secret passwords in plain text are horrible I think people can agree. But people store many life details in clear files open at least to daemons and lots of little codes see even if on an encrypted drive. Think of things like tax returns, insurance forms, records for all kinds of things. Come to think of it, I never really safe guarded any of that stuff more than my plain text file that was actually encrypted and everything at one time. But no longer.
And then finally, in my system dirs I have over 500,000 files. If open source is secure like a bazaar is, there couldn't be Ali Baba and 40 thieves in there someplace? Really? Sometimes ignorance is bliss.
Until it isn't any more.