Oh dear...
Dear Anon,
OK - Security 101...
A hash cannot be easily converted back to a string that would generate it. You might, if you're exceptionallty lucky, get a "candidate" string, but you can't be sure it's the right one, and if you try and brute force it, you will get multiple false positives to contend with.
Now, not being able to get back to the original plain text is important, because many users have the annoying habit of re-using passwords. So, if you can get the password they used for their pop group fan site, you might just also have their Facebook, online banking, Twitter password etc... This bleed over from a compromised site is a common attack vector.
The reason I wouldn't store the password on a site I wrote, even in encrypted form, is simple - I don't need to take that risk. Using hashes will let me authenticate, but it scuppers a lot of things that might be done with my user database should some script kiddie ever get their mits on it - which they won't - but that's another story...
Salting the hash gives a huge improvement in security, because I'm no longer using a standard algorithm to go from the user's supplied password to the hashed value - which means brute forcing is out of the window, so long as you don't know my algorithm. My algorithm would also be include references to random bits of information that the user never knew was associated to their account as well - random data generated when they registered for example...
So, where are we now? If you want to get at the passwords for my users, you are going to need enormous computing resource (ok, you might be the NSA...), knowledge as to the algorithm I have used to salt my hash (ok, I might have a rogue developer turn bad or something...) and access to my Database - which is in turn protected by it's own security system.
And here's the thing - I'm NOT a web developer by trade. So if I know how to implement half decent security, how comes the fat consultants paid by the lads at Universal don't?
Ps. Of course I don't like the password stored as plain text - any numpty can see that is the case from my comment. The point is, I don't like the password stored AT ALL!