The Problem with Forcing Users to Use Secure Passwords
There is not a single password problem but it has multiple aspects.
Passwords must be usable for the end user
So they are either chosen to be easy to remember (simple and easy to hack passwords) or a single more complex password is reused for multiple sites (password reuse).
Your proposal somewhat addresses this problem by basically giving the user no choice over the password, i.e. the user if forced to somehow deal with this. From the perspective of usability you replace on annoying thing (pick a password and remember it) with an even more annoying one: Unless the infrastructure is already there to deal with this (i.e. password management as software or on paper) the user is faced with a big hurdle to continue here. But even existing password management can be cumbersome to use – just try to explain all of this to elderly persons.
Passwords are only a single factor of knowing something, which can easily be cloned
And cloning the password is basically what phishing attacks do, i.e. they try to trick the user into entering the password somewhere so that the attacker now knows the password and can impersonate the user. Password managers can help here a bit by offering to fill in the password only if the domain matches, but not all password managers do this and lists on paper don’t either.
Also under pressure (as done offen within phishing attacks) users are eager to solve their problem and thus will also send the password by mail, tell it on the phone or enter it on random site even if the password manager does not offer to fill it in.
Your proposal does not address this aspect at all.