If they leak, it becomes trivial to find working password synonyms to stick into the other sites you say benefit from discarding information.
But why don't they use the proven common-sense strategy of not storing the passwords at all, but store the hashes instead? They can validate by converting user-input to a hash and then there is no harm even if the user auth table is stolen.
> "the hashed passwords seem to have been changed to all lowercase before storage"
This effectively makes your password case insensitive and probably reduces the % of support tickets (some people might not just click a reset password link and will insist they were typing it right, so they will open a ticket - all because they forgot capslock). It reduces operating costs at the expense of lower security and somebody must have considered it to be worth it.