This would mean storing passwords in plain-text server side, which is worse. We're following the best practices of other major platforms (Yours.org, Blockchain.info).
Browsers need the PW to decrypt the PRVKEY to sign TXs. It has to be saved locally; memo has to have it; or you type it in every time. If memo has it, it defeats the purpose entirely.
Right, I'm not sure if people are understanding this. Memo's not storing private keys on their server. That's nice b/c if they are hacked, nobody will be able to just take all the BCH.