Nonsense. I am well aware of the problem with hash functions.
First off; it is not a primitive, but a protocol, it is still a bad idea to design those yourself. But they are not; they are getting the advice of an expert.
Secondly; this is in a specific scenario where you are left only with the fast digests (shockingly, this is still a common situation). Introducing an "artificial" slow factor is accepted practice.
Thirdly; this is definitely not my idea. The iteration suggestion was from tptacek who months ago answered a similar question to this with something along the lines of "if you must insist on using fast hashing for gods sake iterate it a number of times" (I can't find the quote off hand, it was some time ago, but I entirely agree). The rotating random salt is an old old idea.
It's very easy to recite the mantra "always use bcrypt, follow the first rule of crypto, digests are evil", but it's even harder to use that knowledge in practice, I find. :)