No, it's not. The issue with 1Password was not that passwords were being stored as plain text - only the metadata for passwords (the URLs and website names) was. The passwords themselves were encrypted. And AgileBits now provides a way to encrypt the metadata, too. This blog explains it well.
(Incidentally, the post in the tom's guide thread that you cited even stated that it was about the metadata, but began with "1Password was found to be storing your passwords in plain text," which is incorrect.)
Truth is, nothing is perfect. Whether you store your passwords and other sensitive data using a password manager or you keep them in a Post-It note under your desk, there are methods like key logging that can steal them. You just have to be realistic in balancing risk vs. convenience. For me, 1Password offers just the right balance.
Thanks. In order to use key logging to steal the passwords, one has to install some kind of programs on my computer. Right? Since Mac OS is more secure than Windows, does that mean if I choose 1Password, I better only install it on iPhone and/or Mac only and avoid using the Windows version?
[doublepost=1453594355][/doublepost]
However, unless you can memorize dozens and dozens of different strong passwords, I think using a manager that let's you retain full control over your passwords is relatively low risk.
Somebody mentioned that it is not a good idea to use one password for multiple accounts. What is the reason? Is it because if the bad guy found that password, he/she would try to use it to access other accounts? Is having only 2-3 passwords for multiple accounts a good idea?