So the traffic is encrypted to a website so the password is safe during transmission and also if the website is hacked then the database only contains hashes.
But couldn't the hacker create a server side script to store the usernames and passwords used to login to the website in a file since they are decrypted and are not already hashed? This wouldn't get every user however it would allow them to view users passwords who try to log onto the site while it is compromised.
Wouldn't it be better to hash passwords at the client side?