I propose this way:
When you open the dialog the password is not visible:
Entering a password or(!) clicking the generate new password button shows the input/generated password hidden:
Clicking the eye-button shows the password (when there is text in the input):
If there is no text and the button is pressed, the old password will be shown in plain.
Whenever the eye-button is clicked it changes to a hide button and clicking it changes the input to a password input so that the password is hidden again.
There is one issue though. This won't work anymore:
Should we introduce an additional button that get's you the old password back or should the hint be shown on the dismiss button?
I propose this way: When you open the dialog the password is not visible: Entering a password or(!) clicking the generate new password button shows the input/generated password hidden: Clicking the eye-button shows the password (when there is text in the input): If there is no text and the button is pressed, the old password will be shown in plain.
Whenever the eye-button is clicked it changes to a hide button and clicking it changes the input to a password input so that the password is hidden again.
There is one issue though. This won't work anymore: Should we introduce an additional button that get's you the old password back or should the hint be shown on the dismiss button?
@Pofilo