I was reading this article[1] on theregister.co.uk about the usability of masked (i.e., hidden) password fields on GUI forms and webpages. It is just crazy to even think that showing the password field is a good thing compared to current practice that has the password fields masked with dots or asterisks.
My arguments:

  1. Attackers will be fine with screenshots of when you login to webpages instead of keyloggers
  2. What about remote screen sharing and when you have to login to a service or webpage?
  3. What if I have a colleague looking at my screen and I need to login somewhere? Sorry can you please leave till I login because you can see my password.... everyone can see it really (even the person across the street with the telescope(not that you should).

There are probably more but I can not think of any right now. I think you get the point. It is a just a bad idea. Maybe they should make the field UV and no one can see it unless they are wearing special glasses (a bit better solution, I think).

Link Used:
[1] Reported by out-law.com - "Masked passwords must go" - http://www.theregister.co.uk/2009/06/30/masked_passwords_usability/