Kenneth,
JFBConnect definitely should not be sending the new user email to all of your users. JFBConnect does exactly what Joomla itself does for sending out new user registration notifications. We look at the Users table and find all users that have "Receive System E-mails" enabled. Then, we send a notification about the new user to those email addresses only. Usually, that's just a System Administrator, but anyone can have the "Receive System E-mails" setting enabled for them in the admin area. There's no way for a user to enable that for themselves on the front end.
The new user email that is sent to admins contains the email and username of the user, but not the password.
The new user themselves will received an email upon registraiton. That will contain their username, email, and password (if set by the user or JFBConnect is set to automatically generate one).
If something beyond that is happening, please check and let us know if the "Receive System E-mails" setting is enabled for your users somehow. By default, it's disabled. I'm sure there's some plugin out there that may enable it for everyone, but that's absolutely not what you'd want.
Thanks,
Alex