This will ensure that users dont type their main Webuzo password in plaintext when using tools like CuteFTP on Windows or FileZilla on Linux / Windows.
This is an important security upgrade for Webuzo although it is not obvious that this could be a valid attack vector - FTP passwords being monitored over Wi-Fi is not something you might normally think of when making a server administration package :-)
Given that any credentials being sent unencrypted on the internet is risky nowadays, this seems important to me.
An alternative would be to force users to create a new FTP account by not allowing the main webuzo user account to login into FTP - this however does not prevent the password being sent across a couple of times till the Webuzo user is convinced that indeed he needs to make a new FTP user.
This can surely be considered to be doing extra work to cover up for lack of user's security awareness, but ultimately a good software is that which does not allow a user to break things, no?