As the hash is being encrypted with the public key in the client, that would require that the client be compromised. In which case the original password is already exposed at that point, thus a discussion of the transport is no longer the concern.
The point of a hash is that the password is not stored on the machine long term. Thus, if an attacker gains access to the back-end and exports all the hashes, you can't reuse the hashes themselves to login. I.e. you need to do a password-cracking attack, which is infeasible with a password of sufficient length.
I don't care if someone gets my password hash. They aren't going to crack it due to the complexity of it.
The point of a hash is that the password is not stored on the machine long term. Thus, if an attacker gains access to the back-end and exports all the hashes, you can't reuse the hashes themselves to login. I.e. you need to do a password-cracking attack, which is infeasible with a password of sufficient length.
I don't care if someone gets my password hash. They aren't going to crack it due to the complexity of it.
Here is my hashed password. Good luck:
You can't use that to login to my system. You can only use it to validate if I give you my password...