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0e1f616
(Get the code!)
The master password is used to encrypt and protect the passwords. I use it especially for that. I don't mind other's browsing the web from my computer, as long as they stay away from my passwords. For this i even have a extension that reset the master password after 5 minutes, so i can safely walk away from my computer.
Also, if you want to protect the entire profile behind the master password, you would also need to encrypt all the session data and possibly bookmarks/history and everything else. Doesn't look like a simple or easy workaround to me.
Beside, the problem is wider then only the master password pop-up, but also multiply (pre-filled) login popups for the same site, or proxies passwords etc. Would make more sense to solve the underlying problem. Didn't the current patch get a long way in that direction?