Comment by samdk

While this is possibly an interesting UI experiment, this paragraph says everything you need to know about real-world use:

    Utilizing something like bcrypt as a hash function
    is not an option, because the number of rounds needs
    to be reasonably low for it to work in real-time in
    Javascript. 

If you're not using a slow hash function like bcrypt, you're doing password hashing wrong. Your users' passwords are vulnerable to brute-force attacks as soon as your database is compromised. (And "my database will never be compromised" is not a valid response.) Before doing anything with your users' passwords, read this: http://codahale.com/how-to-safely-store-a-password/