The iTunes password is needed so rarely these days that most people really struggle to even remember setting it.
IMO, the iTunes password should be eliminated entirely. But I have no idea how to handle the activation lock situation if no authenticated device is on hand.
Whoa whoa whoa - hold on there. Your ‘iTunes password’ protects purchases in the App Store and iTunes media stores, access to the iCloud website, your iCloud email, iMessages, app data such as notes and contacts, third party app data, and freaking backups of your entire device.
What exactly would you suggest Apple do to eliminate that account? You might as well say that google should eliminate their gmail passwords, or that Dropbox should eliminate the account password.
My memorized password count is less than 10 and they're all long and secure (and completely different from one another). It's unfortunate that iCloud is on that list, but it's the only one that shouldn't really belong there, so I'm okay with it.
Better solution would be not having login windows at all and make it all in the app and do a sort of oauth type flow if the system needs to share it.