Hi Thomas,
I agree it could and should be improved. However, password is only reset if its hashed not if encrypted because hashed cannot be recovered. If its clear text or encrypted it just sends the current password to the user email address it does not reset it. So if you need to use it without question and answer then I recomend use Encrypted passwords rather than hashed.
At some point I will improve the process so that for hashed passwords it will do as you suggest and send a link to reset it.
Hope it helps,
Joe