Still doesn't answer my question...how can these programs "handle" your passwords when they are as hackable as anything else?
I could send you a copy of my password database and it wouldn't do you any good at all. Now, if someone were to hack my system and install a keylogger, they could capture my passphrase and my data, but that is something that you can do nothing about. Sure, you run a hardware firewall, and don't open unneccesary ports, and check for trojans and the like, but someone could come up with a zero-day exploit that allows them to root your box and you are toast no matter what you do.
The most important thing IMO is to backup as often as you can, and be as careful as is reasonable. Don't log in as root or a user with "administrator" privileges. And never ever use IE to browse the internet. Windows users have a lot more stuff they need to have a box be reasonably safe like an additional software firewall, virus scanners and stuff.
My advise, if you're concerned about safety and security is to use Linux or get a MAC. You can never be completely safe and secure, but nothing else is either, so why should computers be any different?