But passwords are already available in plaintext. This fact alone means that passwords are not exactly hidden from the logged in user. As an analogy, say you h

But passwords are already available in plaintext. This fact alone means that passwords are not exactly hidden from the logged in user. As an analogy, say you have a house and you have a drawer where you keep all your secret information. If you really want to keep the information secret, then you shouldn't allow outside visitors inside your house. You could encrypt the secret information to make it difficult for the attacker to read the information. But he still has access to your drawer because you let him into your house. The attacker can install a remote camera near your drawer to see how you decrypt the information, or he can directly see the decrypted plaintext. So, don't allow anyone into you house.