Storing multiple encrypted passwords behind a single "master" password (in the case of Windows and OSX its usually the OS level User password) is a common way to provide convenience and security for users.
Well, that's what a login password and a lockscreen are for. I mean, these things are secure and well-tested - I'm not sure why people aren't using them?
Do you somehow think that your OS is more insecure?
I don't think you've exactly explained what exactly you're trying to protect against.
Is it casual attacker who happen to chance upon an unattended computer? Well, in that case, either your computer is locked, or it's pretty much game over.
There is no additional security you can get by just obfuscating it.
My issue is that chrome blatantly ignores the user's decision about when it can access a stored password, and creates its own copy, giving itself arbitrary access to said item.
This doesn't affect me personally in the slightest, I don't use Chrome for anything but debugging, but claiming this is anything other than Google doing what Google does best (fucking the user) is short sighted.
Storing multiple encrypted passwords behind a single "master" password (in the case of Windows and OSX its usually the OS level User password) is a common way to provide convenience and security for users.