[lvh]

I didn't say anything about any particular system. Using MD5 or SHA-512 doesn't have to be bad per se -- using them once is bad.

Also, you mention having to keep it physically secure. I don't think that's true; you can use anything you want to encrypt it, from passwords to smart cards to whatever.

You mention you have a long and cryptographically random password. I'm guessing (hoping?) that it consists of a bunch of words that are easier to remember, since humans are pretty bad at remembering things with sufficient entropy to count, particularly if they come in the form of unintelligible junk :)