I'm the author of the password management series on FilterJoe. For those who feel uncomfortable with password managers, a passphrase system can work and that is

I'm the author of the password management series on FilterJoe. For those who feel uncomfortable with password managers, a passphrase system can work and that is included in the series: http://www.filterjoe.com/2010/12/06/a-base-phrase-approach-to-password-management/ http://www.filterjoe.com/2010/12/06/a-base-phrase-approach-t... However, I suspect that very few people are willing and/or able to do this. Look at what people actually do, and how it fails: http://www.filterjoe.com/2010/05/14/the-usual-way-to-manage-passwords/ http://www.filterjoe.com/2010/05/14/the-usual-way-to-manage-.... About half the population uses the same 2 or 3 passwords on all sites. A third use the same password on every site. This is according to a Sophos study: (http://www.thetechherald.com/article.php/200911/3184/Internet-users-still-using-same-password-for-all-Web-sites http://www.thetechherald.com/article.php/200911/3184/Interne...) So at least 80% of the population has terrible password security. Most of them will never change unless they are offered a very simple and convenient alternative. Password Managers like lastpass, 1Password, RoboForm, and KeePass are currently the easiest way to manage passwords in a relatively secure manner. As you say, there is the theoretical single point of failure. But in all of my research, I have not been able to find a single instance of a password database (from one of these 4 market share leaders) being compromised when protected by a strong master password. On the other hand, password theft occurs millions of times per year. As you likely know, those who reuse passwords often then get more serious accounts hacked when a password for an inconsequential account gets captured. I would love to see the tech community rally around this simple solution for the masses, just like they did for virus checkers on Windows systems a decade ago.