All in all this is a good proposal, but there are drawbacks that would need worked out before its viable.
- All of your internet passwords would be stored in one central location instead of many different locations. Can’t really do much except distribute this one, but its something to be aware of.
- If that location ever gets hacked you are screwed and will be scrambling to change passwords that you don’t know because they were generated. This is a very very very bad situation.
- If the central storage site goes down, you have absolutely no recourse. You cannot access anything and you cannot change passwords because you don’t know them. If this is a distributed site then this may be far less likely, but could still be an issue.
Guarantees for uptime and such can be made but we only have to look at what happens when RIM goes down to see how bad things could be. The current approach is by no means perfect, it isn’t even good, but more thought would be required before your proposal would be anywhere near viable. We just need to be sure that in our rush for less annoying security we don’t lose security.