Office Guy- Looks like we'll just have to disagree on this one. My thoughts on a few of your points....
This is exactly why you shouldn't use the same password for multiple sites. This is the responsibility of the user. 
Yes, you shouldn't use the same password for multiple sites- but most users do. Isn't a large chunk of security practices/ techniques designed around the fact that users may not be particularly careful?
Many people log into their email accounts every day by sending their password over clear text. Most hosting companies send all of the login information by email.
A quick survey shows gmail, yahoo, aol, have their email logins on https. hotmail/mslive allows you to do it on an unsecure page- but gives you the option to switch to https. Without trying it- I'm pretty confident their signup process will never send the password in plain text via email. I'd put money on it :-). On hosting co's sending login info via email- maybe, but again minus the password (or at most a temp password, that requires you to change it on first login).
You still haven't answered the question of how you would do that with an automated system without making the user jump through hoops. You have to be able to prevent unauthorized people from changing their account. If they don't have an initial password, anyone that knew their email account could access it without a password.
Try changing your password with WA. Go to login.php and click "password assistance". WA sends you an email- with a link back to a secure page where you can update your password. Simple process, no sending of password in the clear.
If WA's initial reg confirm email was exactly as is- but minus the password info, and the user forgets the password they had originally created- they just need to go through the password assistance process above.
-scott
