It's all about the threat matrix. My parents use 1password because they otherwise would always use the same one (my mum) or keep them on an elaborate spreadsheet hidden someplace and sometimes hard to find (my dad).

For them, the risk of their un-backed-up computers crashing and them losing all their passwords is higher than the risk of the cloud storage being cracked. They already trust Agile Bit's security since that company writes 1password and hardens it against local attack.

Now, ymMv, but I suspect for 99% of users this is the right thing.