While this news is a little worrisome, I view LastPass as a "better than what I'd do otherwise" solution, not a "perfect" solution. I no longer use my small set of short, easy-to-remember passwords over and over again across multiple sites. Now most of my passwords are long random strings that I don't even know. The overall increase to my average security offsets the downsides of having a centralized target for attackers, I think.