This is an objection without much substance. The main thing that you're worried about with a plain text password is that it will be obtained by a third party.

This is an objection without much substance. The main thing that you're worried about with a plain text password is that it will be obtained by a third party. These are sites which are sending emails with passwords in the clear. They are also storing your password near the decryption key (if any), so a single security breach can compromise many passwords. That is to say: even if the rest of their infrastructure is NSA-level paranoid, whichever server(s) are sending out these password reminder emails are prime targets. Please do not defend this behavior.