Jakob Nielsen has a posting that I think runs against the grain of what most security experts would say is necessary for protecting passwords. He argues that masking passwords, a practice left over from the web’s early days, does not really improve security and reduces usability.
Making passwords visible
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Jakob Nielsen knows a whole lot more than me about design but I think he's go this wrong. I think a better solution is allowing users to login through third-party authentication systems (e.g. Google, Facebook Connect, OpenID, etc). That way users don't have to remember so many passwords.
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