That's not terribly ironic. Contrary to the indignant fanciful writings of tech blog writers, there's no evidence that this is any kind of a widespread practice. Why is anyone's guess, although practicality, exposure to existing laws and basic human decency might all be factors.

But no, let's get a few more redundant and/or downright pointless laws on the books, we're not spending anywhere near enough on lawyers yet.

The reason for why it is not a widespread practice is probably because you scare off way too many potential employees. I know I would consider ending the interview instantly if asked to hand over any passwords. And for sure I would not take any job there.

Scholarships and universities is where there might be a case for the law. I would like to see some real examples first though where current law does not already stops this for scholarships/universities.

I can't give any specific examples, however I do remember reading at some universities, the athletes have to give up their passwords/usernames for social media sites or they risk getting kicked off the team and losing their scholarships.