There are several other ways to log into your account *without* using the SE OpenID service. We support Google (including Google's two-factor authentication), Facebook, Yahoo, and any other site that acts as an OpenID provider. You can use any combination of these credentials without any loss in functionality.

The reason for the password requirements was discussed by one of our developers here — [Can Stack Exchange change the password criteria?](http://meta.stackexchange.com/a/126088/98786) Being an open OpenID provider, your login credentials are available for use with any service that supports OpenID. Granted, most people probably don't use their Stack Exchange accounts elsewhere, but the developers have been steadfast in their belief that they err on the side of stricter security practices. 

I understand your criticism of the password requirements, but I hope you find the requirements behind any one of these alternatives acceptable.