I agree with the article's premise, but the user does need to be educated about the risks at the same time. We can enforce some degree of password strength, but we can't keep the user from reusing the same password. If we could guarantee that their password would never be exposed, that would be fine but I'm never going to make that guarantee. I can be diligent and yet one mistake can still expose the user's (hopefull…
Neither can the user. Users cannot remember a unique password for every site they visit. That's just not realistic.
The simple fact is that unique-password-per-site does not scale. Password managers don't work well, either, because they can't be integrated into the common mobile browsers, and they frankly just require too much user intervention. (Sure, I'll install this plugin on every machine I use, plus the gimpy custom browser for my phone and tablet, and I'll use the app to cut/paste into other apps that need auth...)
We really need to big players to get together and build a system that works, and for them to all implement it properly and push 3rd parties to use it. BrowserID seems promising, but I haven't heard of any other big players signing on to implement and support it.