The offline password doesn't use an encrypted database, but instead used a key-derivation function based on a master password and e.g. the service name to get deterministic passwords.
In the case of a password manager, there are issues with password requirements and service name reuse. Here, by switching to a signing protocol, those issues are mitigated. At the same time, because this isn't the password protocol, it forces users to use this app. Meanwhile, you can't force users to use a password manager, leading to horrible password reuse.
The big downside I see is the immediate compromise upon revealing your master password. In the case of a PW manager, your opponent needs to get to your database first. This might give you time to roll-over your passwords.
Another thing I don't see is key-revocation. What to do when you fear your master password is compromised? That might just be done by essentially the same as a password change though.