I read the blog and comments briefly. Maybe I missed something or maybe
there is a solution that's not clicking for me but here's the problem I
see.

Let's say real-password = hash (domain-name + user-entered-password).
Phisherman sets up a site and does not mark the password field as form
element type password. He does however put a question mark (or whatever
'in page' feedback) as well as some javascript to asterisk out the
not-really password field. The user will enter their password and the
un-hashed password will be caught in the net. Since the algorithm and
taget domain-name are know the bad-guy has all he needs.

A solution to this is to make real-password = hash (domain-name +
user-entered-password + salt). This way even given the password the
bad-guy can't access the site with out brute force. The problem is that
each browser instance must have it's own hard to guess salt and so site
passwords are no longer portable with the user.

A solution to that is to derive the salt from the master password; that
works if I use the same master password at home as at work, though it
still kills my ability to use my password at a kiosk where if they have
mozilla they may not have a master password set, won't let me set a
master password, or have a master password and won't tell me so that I
can't change it.

What did I miss?

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