Agree. So many companies don't act like grown-ups and just try to cover up the problem.
Still, it's going to be pretty tough getting your average customer back who hears they've been "hacked" and are afraid to create a new password. Not to mention the average customer's password is probably the same password across facebook, gmail, etc.
While they do get "+1" for this, they haven't provided any further details of what exactly they did with the passwords. Did they use a salt? Was the hashing algorithm MD5, bcrypt, or something else? If they used MD5 with no salt, your password may not be much more secure than a clear text password unless it's particularly complex.
That shouldn't need a +1.