The encryption is only ever as good as the password. And with something like this, you've got the conflict between a long, secure password and a password people can actually remember/transcribe successfully between the phone screen and the input field on whatever device they want to tether. Remember if nothing else it's got to fit on the phone screen for people to read it, so 128 character passwords are basically out for a start.
They could make it a less consistent pattern, that would help, but they're never going to be able to make the password 'secure'. You could make it secure, but that would also make it basically useless.
Also, remember, this won't actually get you any data that's on the phone. What's being 'cracked' here isn't actually the phone at all, it's the wifi network the phone is broadcasting. Being on that wifi network possibly helps with cracking the phone, but it's by no means trivial to do from there. It's like someone having the IP address of your home PC - it's a first step, but it's not the whole job.
It's a valid complaint from a security perspective but, in fact, I'm not sure it's anything to panic over. Until someone proves you can actually access the phone's flash RAM using the tethered wifi after breaking the password, all it allows someone to do is steal a bit of your 3G/4G data cap.