I mean short and long term there’s pros and cons to that. however there’s a reason why that started to fall appart with e-mail. In short if it gets popular, than hosting servers with no throttling or post limits means spammers are going to go crazy, and rather than play the never ending unwinnable whack a mole game as bad actors create thousands of instances a day, hosts of any instances worth targetting will have to do a “instances are assumed malicious until proven benign”, (IE a whitelist method)
Point is, a hash isn’t a password. giving the most you don’t need tech knowledge analogy, it’s like the passwords fingerprint.
The police station may keep your daughters fingerprint so that if they find a lost child they can recognize it is your daughter beyond any doubt. Your daughters fingerprints, is like a hash, your daughter is a password.
The police should not store your daughter… that’s bad practice. The fingerprints are all they should store, and needless to say the fingerprints aren’t your daughter, just as a hash isn’t a password.