The name "Bot Passwords" is a source of confusion to a lot of users for several reasons:

• One account can have many bot passwords, and also you can have both a main account and a bot account, leading to questions about "what is a bot in the first place, are we referring to a bot password or a bot account?"
• Since a bot password isn't actually a password (it doesn't work with your normal username), use of the word "password" is misleading.
• The word "bot" is overused to mean lots of different things: Bot accounts, bot user group, bot user right, bot flag, bot password, all of which are distinct and independent of each other, and none of which actually means "automated edit." Renaming at least one of these would help reduce confusion a lot.
• This term isn't used anywhere else, so users can't rely on existing knowledge to understand what it is. When explaining what a bot password is, I typically say, "it's just an authentication token" so renaming to this (or to "access token," which is what GitHub uses for basically the same concept) could alleviate a lot of initial confusion.

The situation is made worse because a lot of nontechnical users want to interact with Special:BotPasswords, as it's a requirement for using tools like AutoWikiBrowser, which by design shouldn't require a lot of technical knowledge to use. In my experience the confusing vocabulary of "bot passwords" is the biggest hurdle to getting started with AWB, and moving to a term like "authentication token" or "access token" could help make tools like this significantly more accessible.

I know this would be a huge change that would deprecate a huge body of documentation on top of all of the code changes required, but I think the long-term benefits make it worth seriously considering.