That's not true at all. If you use secure encryption to store plain text, and proper use of HTTPs to transfer said text, that's secure. It's not as bad as obfuscated text. What you've said is just plain untrue.
One problem with storing passwords is that there is no good reason to. The other security issue is that people reuse passwords. So everyone should be creating hashes instead of encrypting passwords, but encrypting text, and transmitting it securely is still secure. This API didn't do that, it did a lot of things wrong, but these comments are all pretty ignorant as well.
It's just one inane comment after another in this thread.
