By "not really an OS issue" you mean "absolutely an OS issue, and unrelated to the OS we've been discussing for the last 7 posts."
Obviously if you use the OS keyring, you wouldn't have encryption on Windows before Windows had an OS keyring.
The original point I was disputing was that it was safe to store passwords in Chrome.
For anyone using Windows or Mac, which represents about 99% of people out there, that statement was completely, 100% untrue until December 2013.
Admittedly, it has been semi-fixed for about 4-5 months now, depending on how you view the current state. Regardless, whether it's considered an OS issue or a browser issue is really not the point anyway.
The original issue was pointed out by a Mac user who found that you could go into the Chrome password settings and click "show passwords" to see all of them in plain text with no authentication required.