- Level 0: the serious stuff that would absolutely suck if it got compromised. Namely Google. Banks.
- Level 1: things that would be an inconvenience if they were compromised. Okay it's annoying that someone got into my Amazon account or something, but this can be dealt with.
- Level 2: passwords my in-laws are going to use to watch Netflix or the like. If this gets compromised... ok, that's a pain for Netflix but this is essentially a victimless situation.
Password managers are really good for the Level 2 stuff. Really, there are too many passwords we need to know. They are okay for the Level 1 stuff, just have an idea who you're going to call. I wouldn't use them for the Level 0 stuff.
Like anything else, you balance your risk against convenience. Approached this way, even if the password manager gets hacked, you're only minorly inconvenienced. Always have 2FA on where allowed and what's the worst that will happen?