Apple may be looking to take password generation out of its Keychain Access application in 10.7, and instead add a password generation utility, much like 1Password, directly to Safari in Mountain Lion (10.8).
According to MacRumors, the latest developer build of OS X Mountain Lion and Safari 5.2, the app now includes a Passwords preference pane:[quote]One of the more visible changes in the Safari 5.2 developer builds has been a new “Passwords” pane in the application’s preferences, offering a way for users to access stored user names and passwords for various sites and services. As currently deployed, the pane is essentially a more convenient way to view passwords already stored and accessible through the dedicated Keychain Access application. [/quote]
In all fairness, 1Password does an awful lot more than just password generation and storage. The application also stores software licenses, files, as well as other things that are not yet built natively into OS X. 1Password is also available across iOS, OS X, Windows, and Android devices, making it a lot more useful than just a Safari password sync.
That being said, I know a lot of people who could benefit from some password help in Safari. If you’re currently looking to get some help with your password generation you can search for Keychain Access in Spotlight, and create new password items for websites that way. Clicking on the key icon will bring up a password generator for you.