before the "show passwords" button, there is a "use a master password" option that is unticked by default.
Generaly tho, i don't have any passwords there (all of them are in lastpass), except a few email account ones. Why do i have ANY passwords there? Well, they are being used by an extension that sort of needs them to push notifications about emails. I do have them protected by a master password, but the extension can still acess them. However, the extension has an option to ask for the password if i click one of the mailboxes in its menu. But then again i can still bypass that if i type the adress of one webmail provider, because i will get credentials for it. A good way around it would be if that extension developer would integrate with lastpass somehow, but does lastpass allow that? Now or in the future forevermore?
Tools...options...saved passwords....show passwords...
So I'm missing the point why it makes Chrome so bad?