What is important is that in my daily life, this is working perfectly well and I do not feel at all the annoyance of the added security against using the same dadada password on all the websites.
I really recommend a head stored + hardware generated password too, this is working wonderfully.
There is no one-size-fits-all solution and it should clearly depend on the threat model. I can imagine why someone who could be expected to have the keys to CloudFlare's infrastructure might want to take extra care.
I'm not aware of ready-made solutions to locally decrypt cloud-stored data on mobile phones though, I don't think you can mount TrueCrypt volumes on your phone. Anyone know of a way to do this?
Based on the protocols they offer it is easy to mount encrypted. LUKS is available for Android (rooted) https://play.google.com/store/apps/details?id=com.nemesis2.l...
It may be considered a faux pas, but I have come to like the http plugin, for KeePass2, which allows Firefox to reach into my database when I come to sign into an online account.
I like KeePassX as well, but prefer to unlock using a password. I have a Yubikey programmed to output a 32 random password that I generated and I append to that a 16 character password that's in my head. I keep the Yubikey and the SD card on which I have the password vault separate. The SD card itself is encrypted* and the version of KeePassX I run is on the card and is one I compiled myself.
Not sure I'd be getting additional protection with a key file. But perhaps I am wrong.
*I did that so that someone couldn't just copy the KeePassX database off it when I wasn't looking and run some offline attack against it. The SD card also has a kind of social engineering defence mechanism on it to dissuade the curious from playing with it... I wrote the word INFECTED on it.