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Interesting. Does the Trezor password manager do something similar to that?

I currently do a few one-way hashes.

Trezor password manager is cool but it's not perfect. I've seen better options which Steemit could implement such as Clef. I suggest the Steemit development team implement support for Clef along with these improvements. SQRL is also a good alternative. The ideal is to move away from passwords once and for all and instead move onto "something they have" vs "something they know".
enter image description here
References
https://getclef.com/
https://getclef.com/security/
https://getclef.com/developer/
https://www.grc.com/sqrl/sqrl.htm
https://docs.getclef.com/docs/integration-guidelines

That looks like it requires a mobile phone to sign in to a desktop app. How do you sign in to a mobile app?

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