"pathetic" is a bit harsh. Yes, one should be using b/scrypt nowadays but at least he's using salt and sha256 it's not md5. It could be better, but it could also be much worse.
sha256 is not "better" than MD5 for password hashing; they're both incredibly fast to brute force and both not meant for password hashing. bcrypt/scrypt, configured correctly, are much slower and much more secure.