still better than "password used by another account"
Modern advice for strong passwords is having a length requirement and checking the input against a list of known passwords, for example using the HIBP partial hash API. (Any time you see forced expiration or complexity requirements, you're dealing with a legacy/cargocult system.)
[0]: https://blog.codinghorror.com/the-god-login/
[1]: I suppose you could salt and hash the user’s password against every other user’s password and their salt, but if you chose an appropriate password hash function and parameters, that would take infeasibly long.
Edit: I missed that you essentially suggested this already. Sorry about that. However, I think the way Atwood explains it is useful.