You're approaching this from "what is the optimal way to securely encrypt my own passwords as an expert user". Consider these two perspectives instead: 1. I am

You're approaching this from "what is the optimal way to securely encrypt my own passwords as an expert user". Consider these two perspectives instead: 1. I am an average user and want to store my passwords, and I don't want to have to think about them for more than 5 seconds, ever. I want some solution that will input passwords for me when I go to a website, and I don't much care about the actual security situation; I assume it's fine. From this perspective, an encrypted text file is a much worse user experience, and the potential for a data breach is not something I'm thinking about at all. 2. I am the CISO or similar security professional for a company. I can't let users just use whatever passwords they want: not only do I know it's a terrible idea, I'm bound by the controls in my security framework to do something to enforce password strength and encryption. So, I need users to do something else. Even if it's allowed by my security protocols, I am not going to trust the 500 people in this company to keep an encrypted text file of strong passwords that I have no oversight on. Most of them will use "password123" for everything, I know this for a fact. Instead, I want to enforce some password standards and rotation schedules, and have a dashboard that says "everybody has a strong password" that I can show off at a vendor security review or even just my personal performance review. That implies a SaaS product.