Unfortunately some developers think that once you've chosen one particular storage technology (RDF, relational DB, document storage) that's the bucket you hae to put everything into in order to do anything in your application. I suspect that was the mental model of the other devs in the story above.
Aside from that, I guess there's theoretically nothing stopping you from using the triplestore for usernames/passwords (I hope you mean salted passwords) but sheesh, talk about killing a fly with a bazooka.
To be fair to those colleagues, it might have been less about them being clueless, and more about them wanting to offload work to my team, lol.
2) if you ask such a stupid question you probably won't be able to properly secure the machine hosting this
3) your users will be totally screwed when you get hacked
And this is why you should never store passwords but only a salted hash, and never trust any service that can email you your password when you click "I forgot my password".
What would you say to them?