I think that the best solution will be to encrypt password like you
were talking using a algorithm for Chromium (available by the svn) and
a different one for Chrome or at least a different encryption key
which will be private/secret to google (not in the svn depot).

The other concern is about showing password as plain text. One good
solution will be to ask your windows password or your fingerprint (if
you have that kind of stuff installed on your pc) to show you your
passwords.
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