Earlier quoted context omitted.
I use LastPass and KeePass extensively in the setup you outline. Why do people use LastPass? Convenience, and you aren't really gaining any extra security (except through obscurity) when using those other services. LastPass encrypts and decrypts client side, their cloud only synchronises the encrypted blob. This is what is happening in the KeePass + Cloud service scenario too. You gain a little security through obscu…
My problem with LastPass is that the Android app is not for free (ok to me) but I find the price too high (I haven't compared with others and Spain economy is right now pure shit, just my situation). That's the only reason I'm gradually moving to localy stored Keeper.
The use of LastPass on mobile is part of the Premium suite which is $12 a year. I'm just a normal user (though I seem to be commenting a lot on this particular story I know!) and I think it's a fair offering.