It's cross-platform and integrates with browsers so it makes sense they would want to use a cross-platform JavaScript solution as much as possible. Not just to make their developers more efficient, but to reduce the surface area for bugs and vulnerabilities.
99.9% of my usage is within the browser plugin anyways. And whenever I have to edit an entry, it works fine.
If you don't (or barely) use the app, the app is not an issue to you; that seems pretty self-evident.
The experience for regular users may differ.
I don't use a plugin. Never tried it, simply never mattered enough (and I generally store frequently-used browser passwords in the browser's keychain as well).
If this had been your business, what would you have done? I would have done exactly what they did.
That doesn't change the consumer perspective: I'm paying more for a worse product.