as far as I know Filezilla no longer applies obfuscation/encryption to the saved password because they are stored in the user's folder: "%APPDATA%\FileZilla\filezilla.xml"
the developers have applied this solution because anything can be encrypted and decrypted locally (even if you use a user's specific key like in Steam) and so the only "barrier" is the user's account, and having care of the security of such account is up to the user because logically if you have access to it you have access to anything saved there (encrypted or in plain-text)... and I agree at 100%.
for the previous algorithm take a look at my decoder:
http://aluigi.org/pwdrec/filezillapwd.zip
