Putting your passwords in the hands of a third party drastically increases your threat surface and no amount of hand-wavy "but it's not as convenient" will change this fact.
Now, it may be true that the convenience factor is very strong right now, but the solution will never be "let's keep hoping real hard that the third parties are good at this." Not unless any of the third parties are willing to take on indemnification or liability.
The proper thing to do is to figure out how we can best empower people on their own. I know it's difficult, but that doesn't fundamentally cut into the fact that "this is what SHOULD be done."