[Xylakant]

How does that statement hold true? I can easily think of an application that just uses a simple service on a separate box behind a firewall that only accepts an email and then sends the password. Authentication works via CHAP or any other auth protocol. The application itself never has access to the plaintext password. Granted, an attacker may gain access to the app-server and then proceed to crack the authentication server, but he could also just rig the application to pass on any password it receives. Just about as good as cracking the auth server and far easier to do. (Added bonus: works for hashed passwords just as well). Granted, this may seem tons of work for a simple solution, but from there on, it's a business decision.