Sorry, I found that this had been mentioned over a YEAR ago in Jan 2012.
Is there not going to be a fix for this?
The only alternative that I know of is to put the username/password in the URL, but this isn't a very safe method for browsing to htaccess secured websites.
In case anyone else wants to know, the method to use the username / password in the URL to provide credentials to the htaccess auth is http://username:password@whateverwebsiteitis.com