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The biggest problem with the system approach, integrating fixed strings with some portion of the URL, is many programs/sites have different password requirements (fixed # of chars, upper case, lower case, numbers/upper/lower required). Oh, and don't forget the security-conscious programs, like SAP at work, that require us to change our password every few weeks and don't allow a small rotation of passwords.
Otherwise it still has a weakness in that if someone steals your password for a given site they can usually figure out your naming algorithm and apply it elsewhere, making a simple system not significantly different than using a fixed password to start with.
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