That said, it can be more secure. Firstly, people reuse passwords, so intercepting a plaintext password gives you access not only to the account on that site, but also several others.
Secondly, if the link expires you can't use old account recovery emails to find out passwords. If you manage to compromise an account (rather than mitm), you can search through for old "here is your password" emails and use those without even having to initiate a new password recovery process, which in this age of mobile devices and push notifications risks the victim seeing the email and getting suspicious.