I never used LastPass but I did use software from its parent company, LogMeIn, including Cubby and Join.me, along with the flagship LogMeIn application. But price increases, dubious practices and poor customer service led me to quit all their services. So I can imagine the feeling that my passwords would be unsafe in their hands (I changed all my passwords when I closed my account but I still get service emails from them, proving my data still exists on their system). The alternative described here, LessPass, is a clever browser-based method that will generally successfully obfuscate your passwords. I use a similar method, but I keep the algorithm in my head, so I can use it anywhere. But it would be nice not to have to type the thing out every time (especially since my passwords are typically 20 characters long).
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