[thefreeman]

Thanks, I came here to make pretty much those same points. From the link:

Normal Encrypted DB: To steal your passwords, the attacker has to steal the database. Then she has two options: steal the master password or guess/bruteforce it.

Password Generation Method: To steal your password, the attacker has to steal your master password, or steal one of the derived passwords and guess/bruteforce the master password. Once she has it, she can generate any current and future passwords, until you stop using the generator with the same master password.