Should you store all your passwords on iCloud?

Apple iPhone users are probably getting excited about all the new features that will be introduced in iOS 7. For example, there is the iCloud Keychain: 

Lots of things you do on the web require passwords. Now iCloud can remember your account names, passwords, and credit card numbers for you. And Safari can enter them automatically whenever you need to sign in to a site or shop online. It works on all your iOS 7 devices and your Mac computers running OS X Mavericks. And with 256-bit AES encryption, it’s highly secure.

Or, how about: Password Generator.
Every time you create an account, you can have Safari generate a unique, hard-to-guess password. And remember it for you.

So, what happens if your iCloud password gets compromised and someone gets access to all these accounts and passwords?

Given that so many people still use the same password for multiple accounts, these new iOS 7 features ought to be beneficial for the average user.