If someone's snooping on your email, I think you've got bigger problems than a lost password, tbh.
As for hashing, again, if someone can get on the server and download the whole database, you've got bigger problems than password hashing.
I'm not saying this is a good practice, but I just don't think it's as big a problem as this guy is making it out.
Also, there's a balance between security and usability. For some kinds of users, not being able to tell them their password is actually a problem. Sites that are able to do that will have a competitive edge in getting those users. So the question is one of balance between usability and security, not just one of security.