Yes, I agree that it's a questionable practice (as is sending the username and password as plain text).
That said, unless you give the users the URL to log in, they can't.
For front-end-only users, I use Subscribe, which lets users self-register and doesn't expose the URL of the manager or login page, the username, or the password.
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I always just change that message in system settings. There appears to be a web user email but I don't know how to get that sent out.