Obviously you have limited experience or familiarity with password managers. LastPass, among others, keeps your encrypted passwords "in the cloud", so that they are accessible even if your local disk "takes a dump". For LastPass, there's also a local copy of the encrypted database, and yes, I do have backups. (If you don't have backups, you have a lot more problems than losing passwords.)
Image/phrase/password verification is hardly "better" (better than what?). How many of those can you remember? If you can come up with an authentication scheme better than passwords that you can get every online service to use, then please let us know. The reality is that passwords are what we use today and password managers make them easier to use in a more secure fashion, so that one has a different, strong password for every login. Two-factor authentication is also very helpful (and I enable that where supported.)
Currently the biggest weakness of passwords, other than most people using them poorly, is sites that store passwords insecurely. This, combined with the tendency of those NOT using password managers to reuse passwords, is what leads to the majority of account hacking.