[nly]

You're describing SRP. The problem, as always, is getting web browsers and web apps to support it.

https://en.wikipedia.org/wiki/Secure_Remote_Password_protoco...

https://en.wikipedia.org/wiki/TLS-SRP

[loceng]

So the execution is failing..

[mpyne]

If IIRC it's also software-patent-protected, which is severely hampering deployment across the greater Web.