I love jgc but here he's making the same mistake most people make when they speak about security: assuming all readers have the same need for security and run the same risks. They don't. There is no point for my mom to adopt this system, it's way overkilled for her. (I think there's no point for me either).
One needs to explain to users two things: the first is that there is a big difference between being A target and being THE target. If you are just A target, picking one password for each website you subscribe to is more than enough. If you are THE target, then people will get to you, no matter how secure you think you are.