6 Character AlphaNumeric for Schwab is because they use the same password for phone, and this is a throwback to a "Pin". They could at least be honest that this is why it is what it is. The Fobs they send that generate a random number to go with your login make this not a deal breaker for me.
Microsoft is balancing support with security. If you can have a 32 character password it is more likely to be forgotten. But that isn't the real "Support" cost it is DDOS attacks. Computing a hash of a 128 character password is more expensive than doing a 16 character password. This makes it possible to bombard their servers with a Hotmail address you know to be real, and an imaginary password which they have to compute and check the hash for.