Now clearly if I hash a password F(P) and another password F(Q) there is a 1 in 2^128 chance they collide.
Now imagine we do G(F(P)) and G(F(Q)). We first have the chance of 1 in 2^128 that F(P) == F(Q) which implies G(F(P)) == G(F(Q)). However, that is not all!
We now have a new 1 in 2^128 chance that G(F(P)) == G(F(Q)). So we have (about) a 1 in 2^127 chance that the passwords will collide.
But, none of this really matters. Collisions aren't what you worry about with password hashes.