Seems to me storing hashes and nonces does not work, because without the original password the server can not create new hashes and nonces. So the client would still always send the same thing, which would be equivalent to a password.
one time during undergrad I was talking with Hal Abelson because there was this big stink about the new research building (Stata center) requiring rfid's to get around. Richard Stallman et al were making a huge ruckus about the privacy implications of not having physical keys.
I mentioned some desired attributes of a protocol to let people in without logging it, and started worrying about the implementation details / feasibility. he said "oh don't worry about implementation. this building has people in it who can implement anything." he had this smirk about him.
so give it some experts and time and they'll figure it out.