The real problem is that every single site needs its own separate password.

(Even worse are products and services where you need a separate password for different features.)

The better way to solve this is to push for better account portability. We already (kind-of) have this with websites that let you sign in with your Google or Facebook ID. (Unfortunately, these systems still have privacy problems because they share your email, or the web site fails if you don't want to share your email.)