This makes sense, I guess encrypting it on top of TLS doesn’t meaningfully improve security. My concern is that you’re trusting the server to immediately salt and hash upon receipt (especially before storing), but if the client at least obfuscated the password, then in the worst case of a leak you have an email and an obfuscated password that can be used to login to the pwned service but nothing else. My specific threat model depends on the average person not adopting password manager hygiene and 2fa across their services, which is fairly common amongst my friends personally.
