Less Fields Simplify Registration form (elaborated question)

(1)How can I automatically give my email subscriber a username & password for after they enter their name & email address in the form on http://finqi.com/banks-pay-you/ ? (2)Or how can I make the registration form from membership2 look more like the screenshot?

Less Fields are less intimidating to potential members & Simplify the Register form. I included 3 screenshot files. (3)Do you see how I can think the 1 with 3 fields is a quicker sign up especially if it's in person. (4)What would be the best way to save time while still accomplishing the overall goal of having members use their email address as a username while also supplying just a name & a passwords in the registration form?