Is there any update/ongoing work on this?

There are several attacks out in the wild that allow extracting
passwords from the firefox store. As it has been said before, non-
technical users will not use the master password (I don't use it either
because it bugs me with yet another password prompt). Implementing this
would be a major step forward in improving users' security.

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https://bugs.launchpad.net/bugs/41179

Title:
  Integrate with Gnome Keyring

Status in The Mozilla Firefox Browser:
  Confirmed
Status in “firefox” package in Ubuntu:
  Won't Fix
Status in “xulrunner-1.9” package in Ubuntu:
  Won't Fix
Status in “xulrunner-1.9.1” package in Ubuntu:
  Triaged

Bug description:
  For a really good Gnome integration, it would be great to have the
  ability to save passwords in the Gnome keyring.

  A similar thing has been proposed for Epiphany: see
  https://launchpad.net/malone/bugs/3467.

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