Hey.
Passwords aren't really
"encrypted". They are
hashed. - That basically means the password is converted into a non-reversible string of characters that should (in theory) be unique to that password.
This is an extra layer of security, and privacy, in case your password database is compromised. It means that your user's passwords will not be clearly readable, even if somebody managed to hack their way into your databases. - It also protects your users from you; the database admin. - This may also be an invaluable protection on shared hosts, where you can not be sure who exactly has access to your database.
It's just one of those basic security features that is easy to implement and may prove invaluable. In my opinion, any site that does not implement this sort of protection has sub-par security, regardless of any other security they may use. (Although that opinion is highly debatable.)
It seems much easier not to have encryption for access to simple membership sites. That way, if the is a problem, I can then log in as the member and see what they see. With encryption, I can not use their password to log-in so it restricts my trouble shooting options.
That you should never do. You should never log in
as another member. - If you need to do anything like that, you should add administrative tools that allow you to do so without having to actually use the user's login credentials.
Bottom line is that user passwords are highly private pieces of data. Even viewing it yourself for administrative tasks is an invasion of their privacy. --
Nobody except the user should be able to know their passwords, not even you. Hashing them, and discarding the original, ensures that.