This scheme struggles in the face of email address case folding. At the protocol level, email addresses are case-folded on the RHS but case-sensitive on the LHS. So it’s crucial that LHS case is preserved by delivery systems. Unfortunately most users then treat them as folded on both. So you can successfully verify one variant, store the downcased hash, and it’ll subsequently match but delivery bounces. Or, hash the…
This works from a technical perspective, as letters with ambiguous capitalization (Turkish i, etc) aren't allowed in emails. It's a very minor privacy compromise: if a user has a very rare pattern of capitalization then an attacker with access to the database could identify their account. Negligible compared to the current standard.