Good thing JoelKatz wasn't the one running MtGox or he would've stored all the passwords in outright cleartext ("no point hashing the passwords, an attacker who obtains the database can just brute force them all anyway")
Actually, the business logic and web machine would not have been expected to protect the password. The authentication system, however, would have been a purpose-built fortress, and it would not have stored the password in cleartext.
My objection is to using encryption in applications where it creates more problems than it solves and doesn't solve the real problems anyway. I am a big advocate of secure encryption and authentication technologies when applied on appropriate hardware to the problems they actually solve.