I have been using it for a couple years and haven't noticed any issue. Even if Google decides to screw me over and terminates my Google account, I can still access the passwords via the local copy in Chrome, so that is not really a concern.
(Though, don't take this as my recommendation to use Google' password manager. I have not done enough research in the password manager landscape, which is why I am asking this question in the first place.)
EDIT: also include other browsers' password managers. (It appears that it is a mistake to mention anything Google on HN :/)