Really excited for this. Password authentication is an absolute disaster on the Internet, and despite at least 8 years of development solutions like OpenID are not succeeding fast enough. Mozilla Persona looks really promising. Sure wish there were a Chrome extension for it!
Then you're never sending anything sensitive to the server.
Sure, it still has the issue of the user choosing a good password, but persona doesn't really get around this, just makes the mail server deal with it.