Oh, that script's pretty similar to a technique I used to use.
I had a folder in ~/Documents/ called Passwords. There, I'd keep plain text files for each website. Each text file would have one line-- the line would say "Password:" and some random password I made up. I'd then check the sha256 hash of the fake password file and use the hash as my real password. If anyone checked the ~/Documents/Passwords folder they'd have thought that they actually listed my passwords, even though they didn't. :p

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