Thank you again for your feedback and interest!
You are right that we do have an issue with the intuitive feeling that it’s bad to have the password sent to a server.
We are considering this, but what we’re trying to achieve is decent security that is really simple to use. So, the ‘offline’ feature would have to be as simple. We’re not quite sure just yet how this would work, but we are certainly thinking about it.
Once again, thanks!