Earlier quoted context omitted.
No. Respectfully, you too have failed to think this through. Attackers with access to raw traffic can (and routinely do) change the traffic. Attackers will simply rewrite your hashing Javascript in transit.
That's an active attack. My statement was clear and correct. The number of people who can passively eavesdrop on traffic (eg, on open wifi) is much larger than those who can dynamically change traffic in transit.
Look, we're locked in an Internet message board death struggle and neither of us are going to concede anything, so let me just finish with this tangent:
If you tried to sell an app to a Fortune 1000 company that defended against passive-only attackers but left logins open to active attackers, and they contracted out a 1 week 1 person web pen test to make sure your app was safe for peripheral customer data to go inside, you'd get dinged for this and you'd cut a dot release.
If, instead of cutting a dot release you explained why it was worth them moving ahead with a pilot that defended against passive attackers, you would Lose The Sale. Seen it happen.
I don't much care about your Hacker News password, but lots of you write applications, and I've seen some of the most unlikely (message boards, bug trackers, blogs---err, content managers) wind up in security audit hell. My advice, take it or leave it: don't bother with these Javascript hash schemes.