Google (android) stores wifi passwords "in the cloud"

2 months ago I bought a Nexus 7, and laboriously entered my 63 character wifi password.
Today, I brought my shiny new nexus 4 into work.
Guess what? It connected automatically.

Convenient, sure, but a massive step too far IMHO, I trust no one with my wifi password, yet google have it in their database.

BTW - I know realise this is not new, I find blog posts about this dating back to 2011.