I don't know if you've seen
https://news.ycombinator.com/showhn.html
one of the things it talks about is minimizing 'try it' friction and this one felt pretty high, even without the password thing. People bounce at not just account creation but also stuff like 'beta access' especially if it's not clear from the 'beta access' verbiage if it means 'access right now' or just ending up on some list.