The pwgen program generates passwords which are designed to be easily memorized by humans, while being as secure as possible. Human-memorable passwords are never going to be as secure as completely completely random passwords. In particular, passwords generated by pwgen without the -s option should not be used in places where the password could be attacked via an off-line brute-force attack. On the other hand, completely randomly generated passwords have a tendency to be written down, and are subject to being compromised in that fashion.

The pwgen program is designed to be used both interactively, and in shell scripts. Hence, its default behavior is differs depending on whether the standard output is a tty device or a pipe to another program. Used interactively, pwgen will display a screenful of passwords, allowing the user to pick a single password, and then quickly erase the screen. This prevents someone from being able to “shoulder-surf” the user’s chosen password.

pwgen Man page: http://linux.die.net/man/1/pwgen