The argument I have is this: The passwords that are going to be hitting Rapidshare in your scenario are the crappy or short ones, whether you use bcrypt, scrypt, PBKDF2, salted hashes or HMAC. Encourage them to use bcrypt or some other iterative technique for the security benefits, but don't exaggerate and tell them that they're "effed" if they have salted hashes. They're still a long way away from storing passwords in plaintext.