On the upside, it is an improvement for the use-the-same-password-on-many-services users, assuming the hash is not trivial to reverse like md5. At this point,

On the upside, it is an improvement for the use-the-same-password-on-many-services users, assuming the hash is not trivial to reverse like md5. At this point, I'm less worried about somebody getting access to some random startup I signed up for than I am about them using the leaked password to gain access to my other accounts. (I've recently changed my password scheme to using a different one for every service, but this just puts me within a minority.)