Functional web apps do not need any user information.
People should be able to use the app without having to submit any contact details. An account is created for them automatically, and, presuming they like the app, they can provide contact details later.
Similarly, most apps do not require passwords at all. E-mail authentication provides a better security layer than forcing users to pick yet another (insecure) password.
The algorithm for using the site becomes:
1. System creates an account with a unique account ID if the user has no site cookie.
2. User, upon being impressed, provides e-mail and name.
3. User can sign in later using their e-mail address.
4. User receives an e-mail with a login link to click.
Most users these days will already have their e-mail application open (be it Outlook, GMail, etc.), so leveraging all the work that has gone into making e-mail secure is a win.