Interesting post by Larry Walsh, which nicely frames the issues we saw when we created LastPass: http://blogs.channelinsider.com/secure_channel/content/authentication_and_access_control/poor_password_management_eclipses_virus_problem.html
Passwords are a huge problem at every organization I’ve worked with, and are typically the weakest link in the security chain, no matter what the policy has been. The solution is a single password people actually care about making secure and associated multi-factor addons to increase security. The last password you’ll have to remember.
LastPass still has a lot of work left in bringing to life our vision of allowing you to use a single password everywhere but we should be able to complete our first stage (web based integrations) and moved into our second phase (desktop applications, flash and Java, etc) in a couple months.