To Prokofy: please stop conflating the abuse of encryption as the primary use of encryption. It seems to me that you're often apt to set off a series of hyperbolic statements that really don't seem to keep soundness in terms of the facts. Encryption is a good move in terms of LL as it also prevents people from lifting your password from your client if LL decides to include it in their system (not just chat). And trust me, in games like WoW encryption for certain accounts is worth it (they use a physical key mechanism that adds a layer of such encryption on the client login to prevent hackers from taking over an account).