Password on new account

You know on a website, when you create a new account. They always ask you for a password twice. And you can't see what you type.

Ostensibly, the password is hidden so that someone can't read over your shoulder at the time that you create the account.

Is this really that valuable? It just seems like security taken too far. If someone is watching, don't create an account in front of them. Is the added security worth the chance of mistyping our password and never being able to login?

I understand the hidden password when you're logging in, since that action happens more often.

Comments?