Sure, making it open source would be much better, but that doesn't mean it's automatically better just because it has open source code.

Amateur move  
Now you could face accusations for plagiarism, so I would suggest that you change that and write your own terms and policy that matches services you are offering.
You can't just copy paste random text stuff found on internet, without single explanation how your service and wallets really works.
Having something like this fully centralized and controlled by single entity is a big NO for me.

Sorry, but I would NEVER use your website for storing any of my passwords or bitcoin wallets, and I have good reason for that.
After reading your privacy policy and terms of use, I saw that you can at any time ask users for their personal information like Name, Date of birth, Social media profiles, Phone number, Home or Work address, payment information, etc.
You are collecting all those information along with users IP address and you can share with with any third parties you want...
There is no information about bitcoin wallets you are creating with Bitcoin Core node, but I suspect those wallets are custodial for users, or you have some control over keys.

If I need to use password generator there are great open source alternatives like KeePass and I don't have to send them any of my personal information, same goes for bitcoin wallets like Electrum or my own Bitcoin Core node.