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So if your local keychain gets corrupted or something, you lose access to every site. That seems risky. You might want to think about some backup scheme if you don't wan to enable sync'ing with iCloud.Yes it's an interesting idea although it's only relevant if your device is stolen and the device has an easily guessable password enabling somebody to access your saved passwords. I tend to side with Rod on this except that I use Apple generated password but don't back them up to iCloud.
Of course, if somebody stole all my devices I would have to use 'forgot my password' on every website to access my account but that is not insurmountable.
Also if someone stole your device, they'd change the contact info on your valuable (bank, etc.) accounts so that your "forgot my password" track wouldn't work.