This is an annoying step from WordPress.
Choice is everything. I admin multiple sites on my own server for business clients. I have a secure password policy that enables me to create secure passwords that are different for every site, but that I can infer from my knowledge of my own rules for creating them. I do NOT require a nanny to create them for me, although the option is nice.
Whilst I can log into MyPHPAdmin and create passwords there, it’s an annoying and complex step, and I don’t like being forced to jump through hoops because of someone’s assumption that I’m not capable of taking care of my own security.
WordPress should make the auto-generation a “recommended” option. If users of sites on my server prefer to have insecure passwords it should be possible to do so, but at their own risk and after giving suitable warnings.
Either that, or allow passwords to be created manually to a set of rules which can be chosen by the Administrator of the site.
This is my first ever serious moan about a WordPress policy. I hope it gets re-considered. It’s a totally draconian change and not what we expect from friendly open-source WordPress.