WordPress post_password_required() backwardness

gistfile1.aw

// From: http://core.trac.wordpress.org/browser/trunk/wp-content/themes/twentyten/loop.php#L69

			<div class="entry-content">
<?php if ( post_password_required() ) : ?>
				<?php the_content(); ?>
<?php else : ?>
				<?php
					$images = get_children( array( 'post_parent' => $post->ID, 'post_type' => 'attachment', 'post_mime_type' => 'image', 'orderby' => 'menu_order', 'order' => 'ASC', 'numberposts' => 999 ) );
					if ( $images ) :
						$total_images = count( $images );
						$image = array_shift( $images );
						$image_img_tag = wp_get_attachment_image( $image->ID, 'thumbnail' );
				?>
						<div class="gallery-thumb">
							<a class="size-thumbnail" href="<?php the_permalink(); ?>"><?php echo $image_img_tag; ?></a>
						</div><!-- .gallery-thumb -->
						<p><em><?php printf( _n( 'This gallery contains <a %1$s>%2$s photo</a>.', 'This gallery contains <a %1$s>%2$s photos</a>.', $total_images, 'twentyten' ),
								'href="' . get_permalink() . '" title="' . sprintf( esc_attr__( 'Permalink to %s', 'twentyten' ), the_title_attribute( 'echo=0' ) ) . '" rel="bookmark"',
								number_format_i18n( $total_images )
							); ?></em></p>
				<?php endif; ?>
						<?php the_excerpt(); ?>
<?php endif; ?>
			</div><!-- .entry-content -->