With OpenID, your password is only given to your identity provider, and that provider then confirms your identity to the websites you visit. Other than your provider, no website ever sees your password, so you don’t need to worry about an unscrupulous or insecure website compromising your identity.
Which of course means us. I'd store your passwords plain text and try them all out on facebook, seriously. This system is awesome, you just log in and those sites tell us it's cool and I don't need to do that human checking stuff either. Which really is the cusp of it, I'm lazy and if I can let someone else bother with all that authentication stuff I will. Speaking of which I didn't even write the backend for this, Kannan did. Thanks Kannan!