I hear you. It's a tough subject. I am pretty paranoid (in the general spectrum, not the slashdot spectrum), and I used KeePass and resisted LastPass for a long time. And I kept my KeePass vault in a TrueCrypt volume. It was a pain in the rear, and useless on my mobile device, and I slowly slid back to password strategies I could remember, which were unique to each site but if one site was compromised an attacker could figure out the pattern.
I did move to LastPass after reviewing managers and reading about how LastPass decrypts your vault locally, and deciding I believe them well enough. Of course that doesn't matter too much, because if they ever wanted my passphrase they could get it and store it when I log in. But again, my point is that there is a balance, and my own behavior when convenience was low was to slide into poor practices. With LastPass, I have a single point of failure, but I'm comfortable with it and outside of that my password practices are much much better.