The iPhone and your passwords

After the first week using the iPhone, I must say that the most annoying thing on the iPhone is entering my password.

If you've read one of my recent posts, I've got a complex password for some of my online activities. While it's a piece of cake to enter it on my MacBook Pro, doing the same is a painstakingly laborious process on the iPhone

I was tempted to change the password to an iPhone friendly format and it would have been too easy to do just that. I presume that some may have already switched to one. But it is just as easy to compromise on security that you've otherwise managed properly over time.

Knowing that almost everyone is online at least a few hours a day and given that we are now using 'clouds' to store our information, would it be wise to switch to a simpler password just because of the iPhone or other tiny devices.

Maybe the OS itself could have an e-wallet type of system with access to all password so that it is easier on the user. Or is there an app already that does that? Would I trust an app to do that for me?