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This sounds good in theory, except that it ties you down to a single computer.
There are so many ways around this "problem" portableapps dot com for one, password keeper apps (Password Gorilla works on all 3 major OSes), synced bookmarks with Delicious is my current setup - but I have had a few over the years. Now "ties you down to a single browser" or "requires you to have your USB drive with you" I would agree with - but not a single computer.