I called MediaTemple for support months back and the gentleman on the phone asked me for my password over the phone. I thought he was going to just log in to my account using the web interface, but he was actually comparing it against the version that was right there in front of him. It pissed me off at first (because I used the same password for other hosting accounts, etc), but then I got to thinking about it. If somebody hacks into the database, they don't really need to steal your password at this point.
Other than the possibility of corrupt employees, or a hacker who takes account emails and passwords from the SAAS at example.com and then tries to log into each customer's email account using their example.com passwords (in case they're like me and use the same password more than once), both of which could happen, is there other reasons why a password should be stored encrypted?