Is plaintext really that much worse than hashed/salted/whatever storage? If the user generated a hard-to-guess password, then the user is also unlikely to reuse it. If the user generated or reused a memorable password, then it would be not too costly to guess most of them using a dictionary attack or whatever the state of the art is for guessing non-random passwords.
Is this just defense in depth, or deterrence, or is there something I'm missing that makes the plaintext storage really much more dangerous?