Look quickly at the above image and tell me what you would type in the second textbox. Yes, it’s the password box, to go with the “Apple ID” above it. But if you look at the dialog, what’s going on with the confusing radio buttons and icons to the left? Am I supposed to click the radio button next to the Apple logo and then type in my Apple ID, leaving the bottom one empty because I’m not an AOL user. If I’m an AOL user, do I click the circle next to the AOL logo and type my details into the textbox next to it, leaving the Apple one empty? After all, in most dialogs the textboxes have labels to the left, rather than above.
Wouldn’t it look better if the AOL/Apple choice was above the textboxes, making it clear they have nothing to do with the boxes themselves? It’d also be good if the “Forgot password?” link was more obvious and didn’t look identical to the “Example: email@example.com” text which you can’t click on. Like this: