As an information assurance guy, I'd encourage users to use the most embarassing possible passwords, since you should never share them. If you need to make resources available to more entities, do it by sharing access, not authentication.

This is what I love about Hacker News... even a semi-trollish post generates two great replies that I am glad to have read.

Generally speaking I agree with you, but in the real world (with real users!) this is not always possible.