Earlier quoted context omitted.
The login process looks like: User navigates to login screen and sends plaintext password to server. Server hashes the plaintext password and compares it to the hash on disk. If the hashes are equal, the server grants access. Since a user can only submit a plaintext password, not a hash, then they won't be able to log in unless they know the correct plaintext password. Even if they have a copy of the server's db, the…
I get that - but in a majority of cases, isn't "juicy" information going to be held in the DB anyway? Sure, you won't be able to go in through the "front door", but if you can get a copy of the password hash from a database dump is it not pretty much game-over anyway? If you're able to perform SQL injection against the DB, would you not be able to change the password in order to gain access to the system, or grant ad…
But they wouldn't have the user's credit card, because that's encrypted separately with the key stored somewhere else.
And they wouldn't be able to take action on behalf of the user. That is, they couldn't place new orders as the user, or stuff like that.