In answer to (b), you have to remember that 99+% of your user base won't even realize how passwords are handled. Storing passwords in the clear should never be the default. I strongly recommend that you find a better solution.
Have you looked at Rancher (Rancher.Com) yet for orchestration? They promise a 2 minute stand up of Kubernetes, Pi native binaries available, hooks to Swarm, Mesos... the list goes on. I would love to hear your opinion of it.
In answer to (b), you have to remember that 99+% of your user base won't even realize how passwords are handled. Storing passwords in the clear should never be the default. I strongly recommend that you find a better solution.