You're right, and this is really bad. The thing Chrome gives you on top of this is greater discoverability - i.e. a list of ALL passwords - and a few buttons to make it easier for non-technical users.
"Today, go up to somebody non-technical. Ask to borrow their computer. Visit chrome://settings/passwords and click “show” on a few of the rows. See what they have to say."
Someone that does that to me would not get a punch in the nose, but that is certainly what they would deserve.
