It does. You can do the same with with the salted hash of the password and not the password the user entered. It's still worse than real authentication protocol

It does. You can do the same with with the salted hash of the password and not the password the user entered. It's still worse than real authentication protocols where you don't store the shared secret at all, but better than those diy schemes described earlier. Also you can't get away from sending the shared secret during registration. Even with asymmetric cryptography you have to rely on the TLS to make sure you exchange the real untampered public keys.