What you're describing is more secure and I do know several people that do this, sometimes with syncing via Dropbox. But it's a battle against convenience and u

What you're describing is more secure and I do know several people that do this, sometimes with syncing via Dropbox. But it's a battle against convenience and user experience and requires a fair amount of technical expertise to set up and use. While I _could_ teach my family to use a local password manager like keepass, it would be an uphill battle, whereas using 1Password, etc is _easy_ for them and means I reduce the number of tech support phone calls I get from my family (for context the most recent call was about fixing earthlink web email roughly a month ago).