A modern password manager (e.g. 1Password) seems like a way more natural solution that this. Not to mention that many services do not use smtpd+ssl/tls.
I disagree with this. I see services like 1Password as a bandaid for the tech savvy population. They are solving the password problem well, but only if you seek out the tool and understand the need for the tool. Approaches like the author's here solves the password problem for the majority of the population - the non-tech savvy population.
To your second point. Yes, this is true. But this is improving [1]. I'd add that forgot password functionality carries the same risk, and I'd add that the more likely chance of your password being 'discovered' is by brute force or a website hack storing passwords in plain text - rather than intercepting email.
> They are solving the password problem well, but only if you seek out the tool and understand the need for the tool
How about Apple's Keychain? iOS and Mac users get suggested auto-generated passwords that are then automatically saved and synced across devices with no extra installs or options.
I agree. I use KeePassX with both keyfile and passphrase. Keyfile is always offline and database is on Dropbox for syncing purposes. If I want to use it on Android, I manually move the keyfile and access database off the cloud. I create 25 characters long passphrase for each website. Works way better than single sign on. No one can every deny me service or close my account.
