Oh, I've not lost faith in password managers. I think everyone should use one. And I think everyone should use a unique password for
every site they have an account with and only a good password manager can make that manageable. Unless you have a photographic or eidetic memory, you need something to keep track of your passwords, besides a sticky note under your keyboard or within arms reach of your computer chair.
I think that is an idealistic approach and certainly
ONLY possible if your master password is unique and not the same as used anywhere else,
AND you changed it in time. I am not saying you are totally exposed, but if your passwords are stored on-line, you are at risk. Period! Though it may be a minimal risk, badguys have proven over and over again that nothing on-line is 100% secure. And while you clearly have advanced expertise in this area, there are no doubts that well funded, well trained, well equipped (perhaps government backed!) badguys with more expertise than you or me are out there trying to hack these cloud services. And should they decide to focus on your accounts, they have proven they can get in. To think otherwise is not being realistic!
For sure, I am not saying my local passwords manger is any more secure. A badguy could certainly break into my home and steal my computer with my locally installed password manger and most likely eventually break my master password and gain access to all my accounts too. But as far as I know, badguys are not targeting me, and they don't have 24/7 access to my passwords either. But they are targeting cloud service and cloud stored password managers.
So again, I have not lost my faith in passwords manager. But this hack has, indeed, reinforced my lack of faith in cloud security. Because for sure, LastPass has some very smart security experts on staff, as well as security programs and protocols in place running job 24/7 with the sole job of preventing such hacks. Yet they failed! Just as happened at so many other financial and insurance and government networks too.
One of worst mistakes any of us can make is thinking we are smarter than the badguys.
