I understood his post perfectly well. By using base64 to store passwords is just as bas as storing them in plain text, because you only rely on the good will of the person who has access to them.
When dealing with security, this sort of practice should be avoided at all costs e.g. a sacrifice to the functionality of your product.
Is the base64 in there actually a measure intended to stop copyright infringement? It can't be, base64 is completely transparent. The reason things are encoded in base64 is so that they can be transmitted in a subset of ascii (and thus be embedded in plain text formats like html).
* You can base64 encode any file, so it'll look like text. Limitations on message size might solve that.
* Sometimes, photos and videos are important. Think of the Abu Ghraib torture pictures, the Tianamen Square Tank Man. Sometimes photos & videos are censored and should be shared with the world.
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