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Originally Posted by Priscillux
I understand from what you're saying that this is standard behaviour for Android-based devices, so my Sony isn't doing anything out of the ordinary.
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It's standard behaviour on all touch-screen devices. Nothing to do with Android. My iPad, on which I'm typing this, does it too.
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However, isn't there a risk that the password be intercepted if the characters are visible even briefly? Sorry if the question sounds naive to those of you with a better than mine grasp of the technical aspects of password protection and security, but I'm reluctant to put in, say, my email password unless I'm quite reassured it's fully protected from "intruders".
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The software you're typing the password into is going to store it the same way regardless of what appears or doesn't appear on the screen. The only "risk" is of someone looking over your shoulder. And if what you're typing is that confidential, you shouldn't be using e-mail in the first place. E-mail is not a secure communications medium unless you encrypt it.