How many people really care about the security of their Gawker account though? They just want comment on a blog post; in order to do that, they must remember a password. "password" achieves that admirably. Now, if they are using "password" as the password for their bank account...they could have a real problem.
It would be great for people if tools like 1Password were more prevalent, even built in to browsers. It becomes trivial both to create and maintain an unlimited number of secure passwords.
And if you read that file, you will read that they used DES for hashing. Reminds me of the LM hash. The LM hash generated two hashes using DES from two 7 byte parts of a 14 byte password. Basically they use each individual 7 byte part as a DES key to encrypt a fixed string. Repeat this twice for each 7 byte part, and concatenate the results, and you get the LM hash.
The list on that pastebin is only a sample of what they bothered to crack themselves (easy passwords like "password" and "qwerty"). The torrent posted in another comment contains the entire database.
It would be great for people if tools like 1Password were more prevalent, even built in to browsers. It becomes trivial both to create and maintain an unlimited number of secure passwords.