This isn't typical. Can you tell us more about what you're running this all on? Distro, language, etc...
I've already had similar issues in the Steam chat windows, on both Windows and Linux. It seems quite random.
After attempting to recreate the problem, I couldn't launch steam again. I had to purge, restart, and reinstall. After reinstalling, the problem did not occur, so as AnAkIn1 said, it may be random. I'm on Ubuntu 12.10, en-us.
Nothing extracted yet.
In the "Create a Steam Account" dialog, the cursor in the "Password" box always moves to the beginning after a character is typed, so the entry ends up being backwards from intended. The "Retype password" box operates as expected.