I do recall reading somewhere that it was planned to release Zelda Classic as open source with some minor changes, but that was a while back and I hadn't seen any recent updates on that so I kind of assumed that this idea had been scrapped haha. Good to know that it's still in the works. There are a number of things that I'd love to contribute to Zelda Classic if given the opportunity so I'm looking forward to it. n_n
Yeah, perhaps it is dumb to have modified ZQuest to bypass the password hash comparison, but I personally find it to be useful and it was fun so, meh. As for bugs, of course I'd report them, but there's no real reason to simply drop a quest due to a bug that could be fixed if one has the ability to do so. It's not like I'd be distributing unofficial updates to quests or anything haha.