1. Shoulder surfing a password is way easier than other forms of cracking. Sure, you might not think people are looking at you as you type your password, but then this becomes a crime of opportunity...
2. There are technological ways around this, like finding a bigger keyboard for your phone, using password management software, imploring the website to make an app, practicing typing, etc. Also, BB/iOS/Android all show the most recent character you typed in a password field. Many soft keyboards give feedback about the most recent character you types as well.
I'm fine with my password fields being obfuscated.
2. There are technological ways around this, like finding a bigger keyboard for your phone, using password management software, imploring the website to make an app, practicing typing, etc. Also, BB/iOS/Android all show the most recent character you typed in a password field. Many soft keyboards give feedback about the most recent character you types as well.
I'm fine with my password fields being obfuscated.