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Because (two off the top of my head) if your account is compromised in some cases it may allow misuse of the provider's resources, or even be used to attack third parties.

I was annoyed too with the password creation. Too much to think. Now I installed this addon[1] and I use a password manager to save it. I don't even know my passwords myself.

[1]https://addons.mozilla.org/en-US/firefox/addon/pwgen-reloade...

Or even better, don't require passwords

Sign up with only your email and you're logged in. If you need to log in later you can get an email link that validates you

Or maybe your service doesn't need a user account

But in the world of people that think their Mother's Maiden name is still relevant, smart user management is rare

It’s a cost/staffing issue. The cost to serve password resets due to forgotten passwords is lower than the cost to respond to “My account got hax0red!” customer service requests (which usually boil down to messy identity management issues).