> your password is only as secure as your confidence in the company's policies and employees' integrity.
Thats always the case. Encrypted password or not. There's nothing stopping them from getting your password the next time you log in.
That's certainly true, although such an act would essentially constitute willful deceit at a company policy level, which is much worse than what I was hinting at. The hypothetical situation I was hinting at was something like an unruly employee being able to circumvent the company's process due to lax enforcement, even if the company's process itself was reasonable.
This is absolutely correct, and I feel some readers may not exactly understand it. It would be one thing if only you had the key to decrypt the password (as is the case for example when you sync your browser data in Google Chrome). When the same people have access to both your encrypted password and the key to decrypt it, your password is only as secure as your confidence in the company's policies and employees' integrity.
Also, as a side note I should mention that even if Newegg was securely storing your encrypted password and key, they forfeit that when they email it to you in plaintext.