iCloud Keychain.
oh wait... that's in the cloud.
But that's probably their reasoning behind this decision; customers want the accessibility of the cloud. And if the cloud reduces friction for customer experience (damm the tradeoff) then perhaps everyday customers (not those who post in security/Mac forums) will more likely buy-in?
I don't care about storing stuff in the cloud, but I do care about subscriptions. I'm sure if they were making enough money to sustain operations going forward, this wouldn't be needed. Unfortunately, they have a user base that bought the product once and don't see a need to upgrade to anything else. The app still does what it was supposed to do - manage passwords through one password. Why buy an upgrade if it still does what you want?
They don't realize that people are constantly updating 1Password to make things stay secure. Subscriptions seem like the solution to that.
They don't gain new customers, because iCloud Keychain and other password managers (like Safari remembering passwords) is good enough. That worked for me for over 10 years. Sure, 1Password is light years ahead of that stuff, but I didn't realize that.