I think the problem is most secrets arn't stochastic; they're determinant. When the user types in the wrong password, it should be blocked. Using a probabilistic model suggests an attacker only now needs to be really close, but not correct.

Sure, there's some math that says being really close and exact arn't a big deal; but then you're also saying your secrets don't need to be exact when decoding them and they absolutely do atm.

Sure looks like a weird privacy veil that sorta might work for some things, like frosted glass, but think of a toilet stall with all frosted glass, are you still comfortable going to the bathroom in there?