I use it and my passwords stick around, so perhaps enabling it would help?

Maybe that's the key, and why they don't care. I tend to stay away from that kind of service though.

I was a little skeptical too but it seems to be encrypted locally before going anywhere, so it seems like it's alright to use. Anyway, if the deletion's compromising security as much as you say it might be an acceptable trade-off.

Fortunately firefox also keeps them, so that's my workaround.