I use the Stanford PwdHash extension, anyone else? I think it's a solid scheme for using unique passwords on every site, based on just having to remember at minimum one input password. http://pwdhash.com
I finally settled on 1Password for the iPhone. I don't remember any of my passwords. I unlock 1Password, find and reveal the password, and type it in. This allows me to have really complex and long passwords. I always have my phone on me, as I use 2-step authentication for every service that provides it. In the rare event I forget a password, I still have email fallback recovery.