"Simple Password Reset" module will ask for the registered email and will send a link with the security token to the registered email address. By clicking on it, the customer can enter his new password without passing through any boring process of the auto-generated password.
In current situation of PrestaShop 1.6.*.*, When the user forgets his password, he needs to proceed with a "Forgot a password" where he needs to provide his email. Then PrestaShop will send a verification link to his registered mail. After this, when user will click on that link and PrestaShop will generate random digits as password and again it will send it to he registered email. That password is hard to remember for the user and again he needs to change it from the back-office.