There's no such thing as perfect security, but as a security-minded person I see nothing there to concern me simply because the data is stored in a company's S3 environment vs on Dropbox vs on my local disk. Presuming that the software itself has not been maliciously modified to leak the key, then regardless of where the data is stored it either requires breaking the encryption or finding the password that generated the key in order to access the data. My local disk is no more secure in that aspect, except that I may have the illusion of control. Availability is also an aspect of data security (in the CIA triangle) and a cloud provider that properly replicates and manages backups of data is more reliable than my local disk in this aspect and a fair trade-off for data I likely want to synchronize across systems and devices (phone and laptop, at minimum).
Why should you trust a password manager?
For me, it's pretty simple. I don't use social login, and I use unique usernames (most of the time) and passwords (every time) for hundreds of sites I've created accounts on over the years. This is because breaches /will/ happen, and password re-use is probably the single largest issue for user security, including for "power users" like myself. A password manager of /some kind/ is basically required to have unique passwords across hundreds to thousands of sites. Certainly, there's more to it, and you need to figure out your own threat model and trust constraints, and I can't solve that for you. But as far as I am concerned, if I have a reasonable assurance that the right algorithms are used and those algorithms are correctly implemented by the password manager software, I see no reason to distrust it.