I used to hear some controversy with regards to "stretching." The argument back in the day was, "it's partially security through obscurity, but the danger is that there isn't research to prove that a hash of a hash is cryptographically strong." So is there research that proves that hashing a hash of a hash of a hash (x100000) doesn't result in a smaller range of values than a single hash for SHA algorithms? Is there…
But don't use stretched SHA1. Use bcrypt or scrypt or PBKDF2, all of which explicitly address this particular concern.