You have a good point, but one thing to consider is the difference between personal data and private data.

Personal data is stuff you might not want people to have, but you it won’t be devastating for them to have. Anything you ever put out on the internet, you should consider that someone has access too.

Private data is stuff that will cost you money or real damage if someone gets access to it. Credit card numbers, social security numbers, passwords to accounts that contain data that has a monetary value.

From a developer perspective, we create a PR problem if we let personal data get out, but we create a financial problem that we will have to make restitutions for if we let private data get out. I would rather put the private data into someone else’s hands than be responsible myself.

It is always good to say on your site, “we never store any of your personal data.”

If one site gets compromised your info at other sites is also compromised. Look at the recent Facebook connect issue with yelp. Someone was able to circumvent yelps security and in turn gained access to personal Facebook information. Facebook was able to shut down access to yelp pretty quickly but who knows how much info could have been mined.

I think security is always going to be one of those annoying necessities and, ultimately in the end, it is going to fall upon the user to protect him/her self.

I tried to use lastpass for awhile but ended up going back to keepass, I think I just like the UI better.

In addition I store the database file it creates in a dropbox account so I can access it anywhere. I also make regular backups of the db just in case.

I even randomize my login name as well for banking sites just because I can.

It is rediculous how many sites want you to sign up for access. I think the last I checked I had over 80 logins in my database.

Oh, its also a great place to store product keys. I hate trying to track down software keys everytime I decide to re-install something.