Blaming Hover.com is shooting the messenger. The problem here is that this is what customers want . As long as you ask Hover to compete for business in a race to the bottom of the "convenience" barrel, you are going to have this problem. If Hover stop doing this, someone else wil come along and take Hover's business by sending plaintext passwords around in email. So. You either live with it and do your business with…
The Big Problem here isn't that Hover has decided that user convenience warrants storing passwords insecurely. That is a problem, of course, but it is not as big a problem as The Big Problem here.
The Big Problem is the grafs spent defending the soundness of Hover's password storage strategy. Hover does not appear to understand that they have conceded user security. They believe that a combination of their network security and physical security† mitigates these flaws. If you're going to sell out user security to minimize customer support costs, I'd at least like to know that you know that's what you're doing.
That Hover does not appear to know what they are doing suggests that there is much more badness to be had in their systems, which is a problem that will burn them much more painfully than password hashes.
† Notably, not application security --- no external auditor would let "user passwords appear in plaintext in a database column" slide.