I have the exact same problem, deleting the login keyring makes svn fall back to the ~/.subversion/auth plain-text storage.
Gnome-keyring needs a manual which explains how to add password groups and SVN needs some info on where/how it reads off gnome-keyring.
Only commits need passwords for me, so this doesn't hit me when svn up ... only when I svn commit.
I have the exact same problem, deleting the login keyring makes svn fall back to the ~/.subversion/auth plain-text storage.
Gnome-keyring needs a manual which explains how to add password groups and SVN needs some info on where/how it reads off gnome-keyring.
Only commits need passwords for me, so this doesn't hit me when svn up ... only when I svn commit.