Earlier quoted context omitted.
> XMPP uses passwords for authentication, rather than phone numbers. Since the server needs to use the password to verify you are you, there should be no surprise that it is sent to the server when you create your account or change your password. Just like any website or service that utilizes passwords for authentication. There are plenty of authentication protocols that don't send passwords in cleartext. WPA would b…
I believe you're slightly misunderstanding the details here (no surprise, as the article is not clear). All modern XMPP servers store the password securely hashed, and during authentication only hashes are exchanged. Your comparison to WPA isn't quite an analogy - in the case of WPA the access point has already selected the password for the network, only authentication is needed. For XMPP and other services, the user…
The article clearly mentions that passwords are sent in cleartext to the server when the user sets/changes their password. It even clarifies that SCAM-SHA-1 won't help as hashing happens after cleartext password can be logged.
> loglevel: 5 (or “debug”) logs every single message and all activities mentioned above plus passwords in cleartext. Some XMPP proponents insisted that this isn’t true as XMPP servers use SCRAM-SHA-1 for password hashing. However, it doesn’t matter whether you enable or disable server-side password hashing as clients send new/changed passwords to XMPP servers in cleartext. The server logs the cleartext password before hashing it.