Everything you said is true, but completely unrelated. :) Here's why: we are talking about the huge legal difference between liability of the user and liabilit

Everything you said is true, but completely unrelated. :) Here's why: we are talking about the huge legal difference between liability of the user and liability of the service. If user's pick poor passwords, that's their problem, and a problem with passwords in general. But if you store the password, suddenly you are opening yourself up to bigger risks, risks that could sink your product. Big difference.