- You could lose the CD or USB Drive containing ALL or MOST of your online account information, defeating the whole purpose of storing them in a database in the first place.
- You need to synchronize the database between your PC and the USB/CD everytime you either add an account or modify account information.
Concerned about your passwords being stored online? PassPack's website explains how the data is encrypted on your PC before it is transmitted to their servers. PassPack also went to great lengths to explain that since they are based out of Italy and their servers are in Switzerland [Swiss privacy laws are supposed to be very tough], you don't have to worry about your passwords being revealed due to some draconian legal wrangles.
Oh by the way, if you forget your packing key, you can kiss your password database goodbye. PassPack cannot recover your packing key if you lose it.