The main downside of an encrypted password store is that you lose all your passwords if you forget the main password. I think for most people this is enough more likely than being hacked through your password manager that it’s not worth it.
I agree that this is a risk, but I’m not sure whether it’s the main risk. Another risk is that if somebody gets access to the encrypted store, they can use it to steal all your passwords.
The main downside of an encrypted password store is that you lose all your passwords if you forget the main password. I think for most people this is enough more likely than being hacked through your password manager that it’s not worth it.
I agree that this is a risk, but I’m not sure whether it’s the main risk. Another risk is that if somebody gets access to the encrypted store, they can use it to steal all your passwords.