Given the fact that there are instructions on how to remove passwords from JJ2 levels on this very forum, in addition to links to versions of JCS that allow you to open levels regardless of the password (or at least mentions of it clear enough for anyone wanting to find a way to download them), I don't think allowing a utility like this is a huge stretch.

People may be using the password they use for J2L files for other purposes as well but this utility would not reveal that very password (because it is not stored in the level file), only its CRC32 hash, if I recall correctly, and other text strings with the same hash. This hash is stored plainly in the level file anyway and is easy to look up for anyone in the posession of a hex editor reading the file format documentation on J2O. The only thing this utility would do is making this whole process easier.

If J2O has "never historically supported or endorsed hacking into other people's levels" it seems strange that at the same time we provide all information needed for, well, hacking into other people's levels. I personally think the J2L password protection is so trivial and rudimental it is not worth holding off easier ways to bypass it. At the same time providing an instruction manual is obviously not the same thing as providing a tool to do it with one or two mouseclicks. I don't think the difference is big enough to hold off hosting such a tool at J2O though, for reasons stated.