> No. Unless you know something I don't, This is voodoo. To do it once might
> add something, but to do it multiple times, with strongly correlated inputs
> seems potentially dangerous. Especially since you are XORing them. Does
> anyone elsewhere in the cryptographic world do something like this?

Yes, there is one other thing that does this.

freebsd md5 crypt -- It back-feeds inner state and outer state in loop
and data-dependent ways; it is a true miracle.

Noone should do that.  These Cryptographic primitives are only strongd
when they are used exactly as intended.

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