> If this is true, wouldn't that make it all but impossible to brute force?
The "key stretching" factor is configurable, but in the end you need to be able to check a login attempt in a reasonable amount of time (say, 1 second). So you have to be able to compute at least 1 hash/s on your production machine (probably much, much more to avoid performance problems).
If the attacker has access to 100 machines as powerful as your production box for 6 months, they can calculate 100 * 86400 (seconds per day) * 180 (days per month) = 1.5 billion hashes.
Depending on the value and strength of the passwords, this could be worth doing. It's almost certainly worth calculating the hashes of the top 100000 most common passwords in any case
edit:
> You'd have to know how many times the passwd was hashed in addition to everything else
As chill1 said, that's usually stored along with the hash. Even if it wasn't, you could see how long login attempts took you to figure out a rough number, then just check the hash of every iteration up to say that number * 2