If you remove the option for having users update their own PWs you wont hear that entire section of the setup conversation. But if they have the option of updating their own PWs they will hear it regardless of the PW policy. Technically this is still true even with their policy in place since admins can flag an account to have an expired Pw at any time regardless of the "never change" option they have in place. The wording of that prompt was deliberately open so as to accomodate sites that require and don't require regular PW updates.
You can't just hack that prompt out of there - replacing it with a blank prompt, for instance, will make that portion of the setup conversation sound very odd (it's the lead in for being offered a chance to update your PW).
your only option is to remove the option to allow users to change their PWs in the Class of Service they're assigned to. Of course having a static PW that never changes is a mind-numbingly bad idea...