I developed this idea with both the common folks and the tech savvy in mind:
The aim is to reduce the number of unique passwords a user has to remember by employing an application to generate new ones on behalf of the user.It got published in the Research Research Disclosure Journal in April 2007 under Disclosure Id: 516023.
In the simplest use case, the user only needs to remember one unique password. The application will use the value provided by the user and a context value (that uniquely identifies the Service Providers with which to authenticate) to produce new passwords.
All that remains is finding the time to implement it :p
As I dig deeper, it seems that a lot of plugins already do something similar with LastPass probably coming the closest.