I think it's time for web browsers to step up and start showing a visual indication for websites that store passwords in plaintext.
I.E. is actually the best at stopping social engineering attacks on your average consumer because of their SmartScreen technology, which relies completely on feedback from the community, both automatic and manual. No reason to downvote this or the original comment IMO.
If you're going to hash my password to 16 characters anyway, why can't I type in 20? But if you're going to store it as plaintext, you need to limit what I input.
see other comments on parent for citations.
At best it tells you to change you passwords before the site itself tells you.