Earlier quoted context omitted.
> make all password databases public, in an encrypted form That is a terrible idea because agencies like the NSA or GCHQ with unfathomable resources and techniques will crack them and never tell anyone. Then you'll have a compromised account, the provider won't know, the user won't know. Then the agency would be able to compromise the account a publish whatever they wanted as that identity. Given there are tricks to…
> That is a terrible idea because agencies like the NSA or GCHQ with unfathomable resources and techniques will crack them and never tell anyone. One, an agency with truly unfathomable resources and techniques is going to be able to get into your network even if you don't post the hashes publicly. Two, all information we have (e.g., the Snowden leaks) implies that NSA/GCHQ/etc. are at best only slightly ahead of acad…
The NSA is going to avoid the former as much as it can, because there is a huge chance they get burned in some way. Anything that they can passively slurp is a huge win for them.