1st rule of cryptography - don't try it at home. You'll get it wrong. There are any number of standard ways to protect passwords, there's no need for them to be reaching for the bottle of Snake Oil.
I think Thomas Ptacek takes it a necessary step further: "Don't implement crypto." Even if you're using a good algorithm, your implementation of it will have holes. The trouble is that the normal exploratory programming technique that gets a MVP up and running doesn't find security holes.
