if(!current_user_can('edit_pages')) {
	// Exclude all passwd protected posts for non-authorized level users
	$args['perm'] = 'readable';
	$args['has_password'] = false; // Make sure
}

Only the perm should suffice, but it does not work in all situations. To make sure we add the has_password argument.
This snippit will allow all logged in users who have capabilities to edit a page to see the title of a password protected post. All others (subscribers and non logged in users, will not se the title of the protected post at all).