This seems like business and product getting in the way of good decisions. Again.
Even if they were 100x the size of the next competitor, they would not get a free pass for the obvious technical failures of their implementation, which have nothing to do with the number of users. The entire vault should be encrypted, end to end. The number of PBKDF2 "rounds" should automatically have increased, even for old users. These are huge oversights that fundamentally undermine their credibility.
As far as coverups at other companies go, that would be some coverup to avoid any whistleblowers leaking things. Unless it was very recent, this is very unlikely. People take cybersecurity seriously, and counting on every employee to participate in a coverup of a serious breach is unlikely to go well.
If you store the secret key locally and only locally, the threat model should be the same as before.
Some suggestions: https://blog.1password.com/where-to-store-your-emergency-kit...
Even if you write it down on a post-it note, you now need a physical attack to access it on top of whatever attack you needed for the master password.
The key is 38 characters long, which is certainly within the range of human memory, if you're inclined to memorize it.
It‘s a strictly additional barrier to the passphrase. Bitwarden and LastPass don‘t use one, so if you are fine with that security level, you could publish it on your blog, GitHub profile, or Wikipedia talk page and would literally not be less secure than those two.
It really only is defense in depth, but in a breach like this is where it could shine. A parallel brute force attack becomes infeasible if attackers need to also compromise cloud or local storage, or even trivially correlate semi-publicly but unstructuredly posted secret keys to accounts/vaults.
Thanks, folks, I should have jsut RTFA'd I misunderstood secret key as a failsafe, it is not:
https://support.1password.com/secret-key-security/
I installed both LastPass and 1Password and they make my homegrown key storage system feel so awkward by comparison.
That's obviously a design choice in order to extract data that can be monetized.
Also, as far as i can tell with some very basic maths based on running hashcat on my 3070, if you have a big long password on your vault, even with very few rounds of pbkdf, your actual passwords should be safe.
I think 1Password's use of an extra "secret key" would be a huge save in a situation like this, where every encryption key is automatically very long