Many sites are now having a means for one to show passwords when typing into a password field. For example, PayPal has an eye that you click to see the password you have entered. The only need to hide passwords when typing into a password field is to keep onlookers from seeing the password. Google also has the show link for seeing what one has typed into a password field. Comes in handy especially when one uses strong passwords and you type one character wrong consistently.
I have implemented this on this site for testing. You may need to clear the browser cache to force reloading of CSS and JS so it works properly. I will add it to the repo once i am sure it's working.