n00bs, eh? I've been in the software business for almost 40 years, you young whippersnapper.
I suggest you study texts on encryption, and maybe read the technical details of how a good cloud-based password manager like LastPass actually works. https://lastpass.com/whylastpa... https://lastpass.com/support.p...
Your super-whiz-bang method still requires a password, it seems. Without a password manager, users will still need to remember their password and many will either reuse passwords from other sites or choose simple ones. The image/caption thing you talk about is often used as an anti-phishing technique, but that's not authentication. If you're requiring the user to choose from among multiple pictures or captions, then that's effectively another one or two passwords. Yes, it will make it harder to attack YOUR site through the web interface, but doesn't itself strengthen protection of the users' passwords.
The goal for password managers is not to protect individual sites, it's to protect the users against their own misuse of passwords and reducing the risk when some site (not yours, hopefully) gets hacked and has their password database stolen. (How do you hash the passwords for your sites? Still using MD5?)