pwd stored in the clear

I second that request! The WP Mail SMTP plugin also has this issue:
https://www.ads-software.com/support/topic/suggestion-hide-stmp-password

Bummer,
-PaulMighty

This still appears to be the case, and despite arguments to the contrary, WP stores user passwords encrypted so that in the event the database is exposed (even if WP is not compromised) it’s not a cake walk for whoever sees the data to use the information.

A possible solution can be found here:

https://wordpress.stackexchange.com/a/25792

Something like this creates concerns about using the plugin.

(I don’t use the feature, but don’t want to be put in a position where I need SMTP authentication and know the potential for avoidable mishap is present.)