This is an irresponsible position to take and akin to telling people to "make stronger passwords." It simply isn't realistic. LastPass allows creation of randomly generated passwords very easily and encrypts and stores them so you can use them anywhere. The alternative for most normal users is to create one or two passwords and use them everywhere, compromising the security of all of their accounts. Obviously your response to this would be that they shouldn't do that but the fact is, without something like LastPass, they have little other choice.
This freakout reminds me of the radiation poison bullshit from a few months back. Bananas have radiation therefore bananas are dangerous. Practicality dictates that you are plain wrong.