> Instead of writing software, one can just combine local crypted or non-crypted information with information stored on distinct devices, including own brain or cell phone.
A colleague of mine just suggested a variant on this scheme: a tool which combines a password with an additional word to (deterministically) generate a new password. E.g. you combine your master password with the word "paypal" (using the word "paypal" as salt if you like) and get a unique password based on that.