I can understand if you logged in as yourself and you were a subscriber you would get a notification email. But if you were an admin and you were trying to reset someone’s password on the account, wouldn’t it make sense to either send them a link for resetting as opposed to just saying your password has changed. It would force a change in workflow, the admin would have send out a manual email outside of wordpress either providing user a password or a reset link.
Maybe email notification could be an optional button when a password is reset through the Users tab. Different notification sent, if an admin updates your password vs you updating your own password.
Just my two deprecated pennies.