[chimeracoder]

> I can see my raw passwords by clicking properties and ticking 'Show Password'.

As opposed to what? They need to have access to the plaintext passwords somewhere; it's just encrypted when it's stored on disk.

> Shocked as well, not to mention seahorse is launched without asking my password.

The default keychain uses your login password, and it's unlocked at login. This is easy to change if you want to have to unlock it every time you use it.