If most sites are salting and hashing passwords correctly (this is 2023...), then that drastically decreases your compromised credential blast radius.
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And it makes me sad that "store your passwords on dead-tree paper" became GOTO. It has serious weaknesses, but also serious strengths... especially in a post ~2005 always-on, networked-everything world.
It turns the security requirement from electronic security into physical security (and appropriate recovery and disposal procedures).
I'm not sure that's a bad trade-off these days. I don't hear about too many people having their password pickpocketed off them...
Full disclosure: Never hopped on the password manager train, because I couldn't find a combination of (a) easy to use multi-device/OS/program, (b) open source, (c) secure from host / corporate ownership. If anyone has recommendations today, would love to revisit...