A better way (than showing the passwords) to make it clear that storing the passwords is insecure was in the very next sentence after the snippet you quoted.

Read this: https://en.wikipedia.org/wiki/Principle_of_least_astonishmen...

Then tell me what's better:

- Asking users to store password, and having a menu hidden in the guts of Chrome's settings that most users will never look at.

OR

- Asking users to store password, and prompting them at the same time that doing so is insecure.

Keeping in mind that the vast majority of users of this software are average, non-techies.