No, I don't think it's healthy to move through life in such a paranoid state. If I thought that, I wouldn't use a password manager and that would leave several problems unsolved, chiefly I would only be able to remember a couple passwords, opening my identity up for hacking several orders of magnitude likelier to actually happen than 1password's entire technology stack failing at its one job.
That's a common good practice.
It's still good idea to assume the opposite.
If you can see plain text passwords, some malicious actor at their side can too. No matter if it's encrypted at rest.
No, I don't think it's healthy to move through life in such a paranoid state. If I thought that, I wouldn't use a password manager and that would leave several problems unsolved, chiefly I would only be able to remember a couple passwords, opening my identity up for hacking several orders of magnitude likelier to actually happen than 1password's entire technology stack failing at its one job.