This is the one feature of Dreamwidth that seriously bothers me. No one should be giving out third-party passwords to anyone but their most closely trusted circle of people (and then only at need), and no responsible website should solicit passwords. This is a feature which should not exist, and its existence diminishes my trust of Dreamwidth even though I'd never use it.

Shelfari, Quechup, and probably other sites which I don't know about used the feature to suck in people's entire address books and spam them. Others could be hanging on to passwords for subtler purposes. You people at Dreamwidth may be totally trustworthy, but I don't know that, and asking for information which you shouldn't ask for makes you look less trustworthy.