Look, this ain't some high brow crypto discussion. It's a complaint that passwords show up in plaintext on the screen. We're trained all the time to not look when people type them in, they're covered with dots on forms, and we don't leave them lying around for anyone to see.
Sure some people do, but not everyone can be saved from themselves. But it sure as heck feels wrong, and this is by and large an interface problem, not a security problem.
Finally, someone else noted that the passwords actually not actually saved as plaintext, removing the real fear that the passwords can be gotten if the hard disk is merely read elsewhere. So it's not even a security risk, so long as no one makes an add-on that can grab those passwords in plaintext, which would be darn near insane.
(Am I the only one who thought key rings and such existed to mask the password so no one but the authorizing runtime ever saw the password as plaintext? (As in an app points to the key store and then another trusted program handles the actual password transaction so the first app never has to know it.) I can't be the only person who thought there was something more clever at work, I hope? Chances are I'm just too trusting.)