Sadly it does not. And it should! This is how modern websites are supposed to work! Regardless of how clear steemit makes its below policy it will continue to drive users away!

Here is what steemit says when you try to change/recover your password:

Change Password
The first rule of Steemit is: Do not lose your password.
The second rule of Steemit is: Do not lose your password.
The third rule of Steemit is: We cannot recover your password.
The fourth rule: If you can remember the password, it's not secure.
The fifth rule: Use only randomly-generated passwords.
The sixth rule: Do not tell anyone your password.
The seventh rule: Always back up your password.

This is a MAJOR problem for Steemit!