Yes, we know you can add/remove words one at a time, by typing it, then doubletapping, then swype key. Which is a total, complete PITA when you are in the middle of an email or txt and all you would like to do is type a reply with actual words, and not gibberish that Swype auto-adds to a dictionary file that we can't access. Really don't feel like typing words I didn't want into a message, then hit 3 more taps/swypes to remove it from a dictionary that ought to be editable.
I'm talking about a standard flat file or db file that is editable in bulk. As in, open a spreadsheet and do wholesale edits/adds/removes all at once so your dictionary is accurate. Honestly, you should also have to select a typed word THEN Swype it to add it to your dictionary in the first place. Auto-adding every single letter/number/word that's typed in is a recipe for this type of problem.
Not to mention, your problem with passwords (spot on) - that illustrates exactly what I'm saying here... Even if you go thru the 4 tap process to remove a word from your dictionary, Swype will add it back as soon as you type it again. In other words, jumping thru those silly little hoops to delete an entry is utterly pointless.
Not to mention, when upgrading or flashing a ROM, all of your custom entries are gone and you start all over with a fresh file. Which blows, quite frankly. There is no good reason that we can't save/export/modify our user dictionary from version to version and avoid having to painfully recreate your library every time we upgrade or flash.