Yawp. I *know*. In such situations, I've been known to use a password consisting of 1 upper-case letter, 1 lower-case letter, and 8 _space_ characters.
In at least one instance the in-house 'tiger team' went back and re-implemented their password cracker when they found out what I was doing.
Really _good_ password systems allow _any_ character as part of the 'password', including things like 'backspace'. This increases the 'search space' that the attacker (using a password cracker) has to probe *immensely*, has very good odds of fooling someone who is watching it typed in, and numerous other advantages.
One of the -best- systems I saw: prompted for a password, then, no matter _what_ you entered, responded "invalid", prompted again, and again, no matter _what_ you entered, responded "invalid", prompted a third time checked that response for minimum acceptable length, but otherwise ignored it, and let you in _if_and_only_ the first two attempts (a) matched, and (b) were the correct password.
*Amazingly* effective against those who didn't have inside knowledge about how the system worked.