well you're not 100% right here.
If you make it so, that not the admin sees all false attempts, but every mod can see the attempts on THEIR OWN account, it's also no problem to show the pw.
It can be useful for investigation if you see someone tries a PW you use on another site. In that way you know the other site's admin is a problem...
You always have to look at both sides of a medall, not just one