ah! very good point.
It would parse the html of the pages you browse, plus the time spent.
What you type, of course, is not logged.
I don't think your password'd be displayed in an html page at all, it's always the little boxes with asterisks instead of chars that you see (and even so, not even the asterisks or anything inside a textbox would be logged).
So I don't see any way that kind of logger would capture your passwords. The same as google doesn't capture them...