Problem with this is when you need a password with a capital letter, or with no symbols, or only 8 characters long.

Additionally, how do you determine the service name? e.g. I have a wordpress.com account; do I call that 'WordPress' or 'wordpress' or 'wordpress.com'? I guess using the domain name is fairly robust, but then you get stuff like Stack Exchange, or the service changes its domain name, or international variants - google.com vs. google.co.uk.