Keezel, password generators are used to board a large number of user accounts at once and assign passwords to them AUTOMATICALLY, perhaps from another database or something. For instance I have a program that "steals" user data from the HR database, GENERATES a password, prints the user name automatically based on the first name and last name, then prints out a copy (for me) and mails it to the user. So the user gets

Hi, John Doe welcome bla bla bla;

Here is your Username: jdoe
Here is your password: jn2342de

There are many uses for password generator and I like this one because it's better the one I ad hoc'd one night.