FWIW, unless you type in a passphrase upon startup of your device, there's no sane way to have encrypted passwords. The usual 'encrypted' passwords people see are usually a static passphrase and about as secure as a broken padlock. Yes, there's unencrypted passwords in gconf and other places. If they were to be truely encrypted we would need the TPM from Maemo6 devices. They have to be unencrypted as you would need to unlock it for the application each time it uses it.