This reminded me of a phone call I had with my mobile phone company. They started asking me questions that a somewhat good friend/contact of mine would know the answer to (like my birthday, etc). I mention that all these questions are useless and just a hassle for me the customer. The guy says "it's for my security". I then explain to him that apart from the password, anyone who knows me a little bit can answer all the questions, and therefore the only safety measure is the password and the rest are a hassle. This seemed to veer off his booklet of scripted responses and was quiet for a few seconds.
The real security is not what I reveal online, but what companies accept as unique info that only I know. As long as they are stuck in the mentality that the only person who knows my postcode is me, we'll have a serious security hole (think about it, these days, not only anyone find out my address, but can also see what my house looks like, in 3D). The only real security is some kind of password or passphrase. Personal info is no longer a guarantee of authentication.
The other side of the coin is us, the consumers. We need to accept that we have to remember passwords, and that they cannot be our pets' names or mom's birthday.
Here is a tip of what I use for passwords: when asked to create a password, I look around the room and pick out two objects. The password is then (say) "phone LCD" or "glass plant". You'd be surprised how easy those passwords are to remember. And they have the slight advantage that you can choose them to be worded into a sentence: "My phone's LCD is broken." Anyone listening in on the conversation hoping to pick up the password will be disappointed
I'll end my blabbing with this: security is a frame of mind, a way of life. You're either secure or not. To give an analogy, why lock the windows if you leave the door wide open? Lock everything!
Pierre