If they use the same codebase that is on opensource wordpress they store the password as an md5 hash which isn't much better. Take a look at the wordpress source code one day, you'll be horrified.
I spent around two years working on some of the highest traffic Wordpress sites out there and I came to the Winston Churchill-like conclusion that Wordpress is the worst blogging platform out there, except for all of the others that have been tried.
I totally disagree, Habari's code base is far superior to wordpress in every regard it simply needs a larger user base. Try it if you are looking for a new blogging platform you'll be pleasantly surprised. http://habariproject.org
I wouldn't argue that Habari is probably better code than WordPress, but it doesn't seem fair to compare a 0.7 product to something as functional and battle-tested as WordPress.
