I was beginning to get perturbed by the inundation of password fields lately, but I actually really like this one. However, I think that it would be more effective as a browser plug-in than a site feature.
I agree. Different implementations will undoubtably use a different visualization technique making it hard to recognize at all the different sites. Though in theory this is a non issue because everyone uses a different password per site, right?
Right, at a glance you could see if someone used the same password in more than one place. Of course, you could circumvent the whole issue by pairing the url with the password to generate the hash.