I just encountered this problem. I'm using the chrome browser and was just updating one of my accounts with a new generated password. Here's the problem. The site needs me to input the previous password as well. So what I did was I loaded up the 1Password extension and copied the old password first, then proceeded to generate a new password and used the extension to autofill the new password into the password input fields. After which the extension dialog box closed. Now, what I did then is to paste the copied old password into the old password field and move on, which works fine.
Here's the problem. I didn't get a prompt to update the password, NOR is there any history of the generated password. See the problem? I now do not know what the new password is and there's no way I can retrieve it anywhere. Thankfully, the 1Password app itself does have a history of all the generated passwords. PHEW!
Is there something i'm missing or the Chrome extension does need some level of manual work? I didn't remember encountering this type of issue when using Safari.
BTW, I'm using a Snow Leopard MBP.