I may be missing something here, but what is the problem with Facebook? You can change your password any time you want, and can use any one you want when setting up the account. *baffled*
Me and my cynical mind thinks that as the whole password crisis evolved around Ban Amy Tw*tFeatures and that it is a scam not to get you to join the group out of fear for your password/eBay account/msn ....
They're on about when you join and have the option (or you can do it later if you choose to) to enter your email address and email account password (e.g. hotmail) for Facebook to check which of your contacts are on facebook.
But yes, it does seem a bit of an overreaction - you're not forced to use the facility!
Lol its all a conspiracy lol joke! Little_mare is right, its about when you select the option to add your hotmail contacts - which is an external extra not a facebook thing. Simple, dont select it and add them manually lol duh!
Also a lot of networking sites allow you to add eamil contacts if you so wish.
I think BEBO also lets you enter email address and password to find friends.