Yes. It adds this feature. But only if you assume that the database was compromised or nefarious logging was enabled and no further access to the server was possible. Otherwise, the attacker can modify the JavaScript that is used by the client to perform the hashing (and remove/adjust the hashing function).

To be clear, it would have prevented these logged passwords from impacting other websites if the true cause of the Robin Hood password reset was a logging issue.

As a user, you can prevent this from happening either way by choosing strong, unique passwords for every service.