I am getting quite suspicious that this is whats causing it:
250-AUTH LOGIN NTLM DIGEST-MD5 PLAIN CRAM-MD5
It should read:
250-AUTH PLAIN LOGIN
I only told it to use plain login, I don't know why it's still wanting to use the extras.
I changed the name of anything that could intercede smtpd.conf
In both directories /usr/lib/sasl2 and /usr/lib64/sasl2, I changed the names of Sendmail.conf, smtpd.conf, and saslpaswd.conf incase they were overriding /etc/postfix/sasl/smtpd.conf.
mech_list: plain login
allow plaintext: true
sql_select: select password from users where email = '%u@%r'
I can't figure out what is overriding this. It can't be overriding the whole file, or I imagine it would be more broken. It's just overriding the mech list.