Ultimately, however...
I do not see the need for a government regulated password system. If that warrants calling me short-sighted, so be it. But look at it this way - we have a government which is already deep, deep in the hole with respect to finances, and they're... creating a new institution? No matter how minor, this is just stupid in that regard...
Especially seeing as (a.) it does not satisfy any immediate needs, only a precieved one, (b.) is untested and will require further expenditure on an already over-streched system to operate, and (c.) inevitably will be abused by third parties, and more than likely the government itself. There are certainly counterpoints to this, but ultimately is there anyone here who seriously puts so much faith in the government to approve of this?
I do recall signing a petition against this... Unfortunately, it might take more than things like that to stop something like this from going through.