I did immediately change www's password again and de-privilege the ssh key that that box had been equipped with. In fact I've recently started always ssh-ing into servers with the -A flag so I don't have to give them keys at all.
So far I don't see any more mysterious activity. Thanks for the word of caution.
Sure there might have also been a local privilege escalation vulnerability, so rootkits are definitely something to check for. Depending on the situation, re-installing might be less work, so then it'd make sense.
But especially if you're not the only one using the machine, having to reinstall the OS every time a single user fucks up and has 'password' for a password, it's going to get really tedious really quickly.
I certainly don't know enough about computer forensics to make sure that a system hasn't been altered (and I dissect malware for recreational purposes). So unless it's a system that hosts something completely unimportant I'd take the weekend free to wipe + reinstall the stuff.
Even recently a linux local privilege escalation has been discovered[0]. So who knows what the hacked www user really had access to.
This is what automated installs are for. Kill the box, fire up a new one, and run the provisioning scripts. As a bonus you've got actual documentation showing how the box should be set up.
And you shouldn't trust them either, so you need to assume they have if they could have. That means definitely reinstall when you find out you've been vulnerable to e.g. a local root exploit, regardless of user accounts have been hacked.