Found out the reason why I must store plain text passwords. It's because of the sasl auxprop framework. That only works with plain text passwords, not encrypted ones. Subversion and sasl use the md5-digest method to communicate with the client, so that's covered. But having plain text passwords in the database, really, we can't get away with that these days.
Supposedly with saslauthd and the pam framework it might be possible to use encrypted passwords. So testing that now.