Hm there's not too much information available. It all depends on the smart card implementation though, but I can't see details about that. With a secure smart card, this might actually work, if they don't fall through one of the many crypto traps.
Personally, I use LastPass with Yubikey-authentification. While I'm not happy with storing my passwords on a 3rd party server (LastPass claims they're stored in encrypted form, but I really have no way to check that,) I decided that the advantage of having secure and unique passwords for every service I use is bigger than the disadvantage of storing the passwords with them. The Yubikey acts as a security token for two factor authentication on computers I don't totally trust, like my work computer. The whole thing works pretty well for me. If I could actually run the server side on one of my own systems, it'd be perfect. Oh well.