Why does the exclude feature exist?
Some systems reject certain characters (e.g., spaces, angle brackets) or have ambiguous display issues (0/O, 1/l/I). The exclude field lets you remove these while maintaining maximum entropy from the remaining charset. Excluding 5 characters from the 94-character set reduces per-character entropy from 6.55 to 6.47 bits — negligible if you compensate with one extra character of length.
Should I use a passphrase or random characters?
Both are valid strategies. A random 16-character password from 94 characters provides ~105 bits of entropy. A four-word passphrase from a 7,776-word diceware list provides ~51 bits — too low. Six diceware words give ~77 bits, and seven words give ~90 bits. Random characters are denser in entropy but harder to type manually. Use random characters for passwords stored in a manager; use passphrases for the few passwords you must memorize (e.g., your password manager's master password).
Is client-side generation really safe from interception?
The password is generated in your browser's JavaScript runtime and never touches any network. However, browser extensions, keyloggers, or malware on your device could theoretically capture it. For maximum security, generate passwords on a trusted device with minimal extensions, and paste directly into your password manager. The generation itself is cryptographically sound — the risk surface is your device's overall security posture, not this tool.