Optimum online password

Who conned Optimum into limiting their passwords to 8 characters? Does it really take up that much more CPU to validate a longer one or that much hard disk space to store it? Why does this issue still persist on highly trafficked consumer facing websites?
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It could mean one of two things:

  1. The password field in the database is only 8 characters wide. But, that would also mean that the password is store in clear text.
  2. Optimum made the decision to save users from hurting themselves. Someone from their information/systems architecture group: "Oh noes I can't remember passwords longer than 8 characters, so I bet nobody else can either."

Whip that person.