I think OP mean that if you use unique passwords, you would typically use a password manager and randomly generated passwords. You don't need to know so there i

I think OP mean that if you use unique passwords, you would typically use a password manager and randomly generated passwords. You don't need to know so there is no point in seeing the password. I don't think showing the password would actually encourage to re-use a password, but hiding the password may encourage to use a password manager and unique passwords.