Your solution is a very basic. The case above is more complex because using your solution you can't manipulate with fetched data outside of template and even outside {#await / } tag. So, if you need a read-only solution it's good but otherwise, it won't help you.

According to our understanding of the inconsistencies, the feature was likely trying to support too many edge cases. All caching strategies have weaknesses and eventually break down if the usage is not properly scoped.

I don't think this is a common enough use case to warrant this change (which would need documentation and tests if it were to be accepted). Overall, the goal has been to simplify the validators, and prune out edge cases. This use case can be easily accomplished by just using a method instead.

As such, they're not in clear text and whilst I appreciate that will mean some use cases aren't feasible, protecting the individuals still using these passwords is the first priority.