Mike Evans at Macfilos.com discusses iCloud Keychain.

Like Mike, I tend to be a bit paranoid about my passwords and for the foreseeable future I plan to stick with the proven solution which is 1Password. Straight after WWDC 2013 I started pondering whether iCloud Keychain was something I could use. The point is that 1Password is more than a password bucket. It can also store document Id, software serial numbers, notes you want to keep private, can audit your passwords and so forth.

Truth to be told I’ve enabled iCloud Keychain on a couple of devices because I was curious to know how the setup worked and how the sync behaved (extremely well from the tests I carried out). For normal users, this solution is ideal as it works transparently like most things Apple.

For whoever wants more flexibility, 1Password is the right choice. I buy any new paid upgrade because the guys at AgileBits deserve it.