Peter brings up a good point about device loss. You don't want people getting access to passwords when they find your device.

When I was mentioning clear text password fields, I didn't mean they should be pre-populated with the clear text password at a later date/time. Only while you're actually entering new text or making a correction on the password you just typed.

I'm fine with obfuscated password fields for times where the password is stored and recalled in the OS as a shortcut (hopefully it's stored in an encrypted state or the whole "security" thing is rather moot.