We should only have one form. I want this to be super slick. If you like, we can polish the UI, but we'll commit this to a branch first and merge it in when we have time to refactor the UI.
I think something more like http://2.bp.blogspot.com/_EuCTzLdp3vE/SguAL9E94NI/AAAAAAAACfk/1hjbP6RH9h0/s1600-h/openID_1.jpg is what we want, though limited to only a couple providers by default: Google and GitHub. These are likely to be the most common providers, based on what we've seen.
It'd be nice to allow that list to be customized, but let's start there.
There could also be a separate OpenID button that allows any URL to be given (the URL you have here, for instance), but that wouldn't be on the form people see right off the bat.