And the passwords are in plaintext, too. When you format an Android phone and set it up on first run, after you login to your Google account and restore your backup, it immediately connects to wifi using a saved password. There’s no sort of password hash that your Android phone could send your router to authenticate besides the password itself.
Oh, and Google is part of NSA’s Prism program. If an NSA analyst, or likely someone from CIA or even FBI (Prism is a “team sport”), asks Google for information about you, your house’s and office’s wifi passwords are likely included in that data. Without a warrant.
Via Gust MEES