There are other similar ones like this also.
I'm not saying LastPass (or any similar service) is bad. I am however amused at the anger we display when the likes of Path upload our contacts without our knowledge, while we voluntarily give our most sensitive data (passwords, and the locations they're used at) to a third party to manage.
1) Using LastPAss doesn't mean one stores sensitive passwords in it. You can memorize a few that really matter (email, bank, etc) and keep the rest there.
2) They claim it's secure:
This is important because your sensitive data is always
encrypted and decrypted locally on your computer before
being synchronized. Your master password never leaves
your computer and your key never leaves your computer.
No one at LastPass (or anywhere else) can decrypt your
data without you giving up your password (we will never
ask you for it).
https://lastpass.com/support.php?cmd=showfaq&id=1096You're definitely right about it being amusing at what get's people in a row. The main difference between this and the phone apps is that they deliberately chose to place their data with LastPass. So, it seems to be not the content but the authority that matters.
I checked a couple of my 1Password files and you're right: usernames & passwords are encrypted, but not the website/URL they're associated with.
This doesn't do anything to defend against client-side malware, but at least if their database is stolen the bad guys will be unable to decrypt your passwords (as long as your passphrase is strong enough.)
There is a weakness - they keep historical versions of your password file. Presumably because some customers forget their new passphrase but remember their old one and so they can recover their file, less any edits since they changed their passphrase. But if you changed your passphrase because your old one was compromised, the bad guys can now decrypt the old version and have a chance to get some still-current passwords from it.
The problem is when some site has unusual password requirements that SuperGenPass can't support. Then I must make up and remember a password for that site. :(
PasswordMaker is similar to SuperGenPass, but you can create exceptions to your default password scheme on a site-by-site basis. So, you can use lower complexity and shorter passwords for sites that have bad password policies, but still use better passwords for those that support them.
Maybe this was a problem in an earlier version and it's been fixed?