Does it matter if they're strong if all they're going to do is md5 them?
Long, random strings with weird characters are unlikely to be in any md5 dictionary, so you'd have to bruteforce it. MD5 is a fast algo so that shouldn't take long for short passwords, but it does provide some security. If you've chosen a strong password then bruteforcing isn't a concern, so the fact they hashed instead of encrypting (edit: used a weak hashing algo) won't matter. It's better than nothing, but not muc…
Why would you encrypt passwords instead of hashing? Encryption by definition is two-way, so you can retrieve the original password.