I went over to the lastpass forums and I'm pretty sure I have read your posts. At least similar post to this one.

The replies seemed straight forward and the explanation on how the password hashes are created and used was well written.

Your question "Where am I going wrong"?

There are two answers IMO. You are not going wrong but:

1. You are working on a premise that there is such a thing as "unbreakable"
2. You have not downloaded and decompiled the binary file that installs the plug-in - nor have you taken said add in apart.

Unless you can create a "Proof of Concept" the argument is null.