Earlier quoted context omitted.
I didn't say anything about reliability or single points of failure. I merely pointed out that it was possible to separate the salt from the hashes and gain security that way. Whether this is practical or not depends on how important security is to you. And yes, it would not be possible to dump the contents of the devices.
The proposal is fundamentally impractical, and thus not a "security gain" in any meaningful sense. It's the equivalent of preventing cipher algorithm breaks by using nothing but one-time pads. It's also theoretically impure in any case, as you've done nothing but add an additional peripheral to the computer. You're seeking obfuscation, not real cryptographic integrity.
It's not obfuscation. The peripheral has a far smaller attack surface than a server. This is real security, even if it comes at a cost of reliability (though one can envision ways of fixing this, too).