I ran across this article on the InformationWeek
site about some security researchers in Europe assessing various iOS password managers. A quote:
"Belenko said that he himself had been using 1Password Pro, which may be the most-installed password manager for Apple iOS. But he ceased using it after testing the application's cryptography. "When we recovered my master password in five seconds? That was a moment," he said.
So, should I be worried?