Aside, I've noticed that the current technique of rendering a fixed number of asterisks independent of the password length is quite confusing to users -- "that's wrong, it's the wrong length", resulting in attempts to type in the "correct" password and this obviating the benefit of the stored password.
Not sure how to fix that. I recall a visible hash of some form being used in the past (eg take a 2-digit hash, pair of with a smiley; I must have entered it right, it's showing me ROFL smiley), but that would aid shoulder surfed password entries, at least.