Literally this converted into:
1- Users abandoning on sign-ups "oh how am I supposed to find a password I will remember"
2- Users bashing us on the app store reviews: "make it super hard to sign-up" even though we only ask for username and password, not even an e-mail
3- Users logging in, liking the app, then a few months later when they got logged out for whatever reason, completely forgetting what their password was and not having a fallback e-mail.
We ended up pulling it back. We just have a small note now that says "easily guessable password" but allow them to proceed with registration.