SuperGenPass has a lot of limitations due to its design, but its simplicity makes up for that IMO. It is not a password manager, just a hasher, which hashes the domain name and the master password into a unique 10 char alphanumeric password. Only one site I've used has complained about this, and that was eBay, which required punctuation as well. It can't handle well if a password must be changed (you can add something like "2012", "2013" to the master pw though). It is great that the passwords are stored nowhere, so there is no need for synchronisation or backup.
Password managers and SuperGenPass are a good solution, but too complicated for most people to use. The system suggested in the article doesn't work either. When a password DB is compromised there will be no entry in the audit hook. The audit hook will only give an elert too late, when the hackers use the password.
There are much better options for improving authentication. It's not easy to do without relying on a third party though, while still allowing logins from various new computers with little effort.