Auth'ing Twitter using a user/pass meant that I could add Twitter support to Blogabond in 20 minutes. Reading Twitter's oAuth instructions took longer than that. For the amount of geek-cred it'd buy me, and the added headache if somebody physically broke into my datacenter and stole the production server, it's just not worth the extra time to implement.
As to your first point, naturally I have absolutely no leg to stand on there. Your mom will still use her bank password for her Twitter account, and I'm a bad person for storing it.