That seems oddly user hostile for apple. Especially for Wi-Fi passwords, which are a very common thing to share. Android has had a feature for years that generates the password as a plaintext-encoded QR code so you can share a wifi password without the other party even needing to type it in. And at least on my pixel 9, I have a toggle on the password entry field to toggle visibility.

I don't have an iOS device handy to compare against, but it surprises me that Apple wouldn't also recognize that Wi-Fi passwords in particular are extremely common things to share.