I can't even begin to fathom the magnitude of this considering how many people likely use the same login credentials for all of their sites.
The problem you run into is that communicating both the nature of the breach and convincing people to respond accordingly is incredibly hard.
This will continue to happen across many sites. I think after enough of these breaches, though, people will start to think about the protection of their online identities a lot differently, which is good, albeit at a painful cost.
It doesn't have to use all those funny characters. But the vault at least allows you to use a different password for each site. Which, in this case, might be pretty important.
Okay, I see KeePass and Password Gorilla recommended here in the other replies. I use KeePass actually, and I've seen PGorilla. But I'd like something that is integrated with the iPhone - and works with Linux and Windows too.
There's an app called Strip that looks pretty good. I'm listening to other suggestions.
I've used LastPass since the Gawker breach. It works with iOS and automatically syncs password databases across all browsers and mobile devices. I've been very happy with it thus far.
<3 <3 <3 keepass. It has clients for Linux, Windows and OS X, not to mention many smartphones (stick to the 1.x version for this.) This, along with dropbox makes for an awesome way to keep track of passwords securely.
The problem you run into is that communicating both the nature of the breach and convincing people to respond accordingly is incredibly hard.
This will continue to happen across many sites. I think after enough of these breaches, though, people will start to think about the protection of their online identities a lot differently, which is good, albeit at a painful cost.