[coldtea]

>Could you not argue the same thing for almost any code used by almost any piece of software closer to the metal?

You could. But if you haven't trusted all/most of your passwords to any single app, you wont have a problem with them being exposed when that particular piece of software is compromised.

Even if someone compromises your OS itself, you'll only lose the passwords you typed in while you were using it compromised. And that's if it does captures thoses, and if it sends them to some remote endpoint, and if it's not caught soon, and so on.

With a password manager compromised, on the other hand, you could loose anything you've put it in, all at once.