Unfortunately usability doesn't necessarily coincide with security. If you have to choose between the two, security always wins.
I have to disagree. Who wins between usability and security depends on the application you're using/building. Rarely there is one good solution to fit all problems.
Don't get me wrong, usability is very important, but if your application has to be secure(and not having someone look at your password over your shoulder is a requirement), then how can you choose usability over security?