The real problem is that every single site needs its own separate password. (Even worse are products and services where you need a separate password for different features.) The better way to solve this is to push for better account portability. We already (kind-of) have this with websites that let you sign in with your Google or Facebook ID. (Unfortunately, these systems still have privacy problems because they shar…
Therefore I'd prefer to have an alternative to oauth with old school account creation on each and every website with separate login/password pair.