> even if the server is breached, attackers cannot impersonate users
The weakest link is still the web platform, an attacker can change the JavaScript served.
> even if users reuse the same password across services the impact to other services using the same password is minimal
Failing to understand this argument, if an attacker wants to target the service, they can run the key derivation themselves?
They can also enumerate users because the salt is returned. It says the server should implement rate limiting to stop brute forcing, but that isn't going to help with simple password reuse.