yes, but to be fair, this issue deserves to be more well known. it wont be fixed if google isn't blamed and shamed for it repeatedly.
I'd like to see routers using the passphrase to generate a long lived authentication token. "Good netizens", as the phrase goes, could ensure their routers / client devices didn't store passphrases without inconveniencing the end user.
Then people go crazy about the NSA having the same access.. you guys don't make the link or ... ?