None of this makes much sense to me, sorry. Brute-force password cracking has worked on salted passwords since Alec Muffett released Crack in the early '90s. The amount of extra computational power required to hash a password and a salt is negligible.
The only thing "salts" do is prevent rainbow table precomputation, but it's just a quirk of the late '90s and early '00s that "rainbow tables" ever became a mainstream attack method: one bad Microsoft password hash and a series of bad web applications. Long before the MD4 LANMAN hash was ever released, people were breaking salted Unix passwords with off-the-shelf tools, on much, much slower computers than we have now.
Computing a hash on 1MB of data is slower than computing a hash of 6-8 bytes of data. Brute-force attacks are based on trying different passwords and seeing that after being salted they generate the same hash as in the database. Therefore, adding a large string to the password before hashing would force the attacker to hash that string. The question is, can this be pre-computed once or efficiently parallelized?
You're advocating creating a 1MB "salt" string to slow down hashes? That's the same as simply iterating your hash function enough times to invoke the block function repeatedly.
Just use bcrypt, scrypt, or PBKDF2. People have already figured this problem out.
First, I do not advocate anything here. I asked a question.
Second, working with a large string of bits is the same as recursive hashing only if you can pre-compute some small intermediate state of the hash function for that string independently from the password you're trying to guess. If you can't, you would have to work with the entire string for every new password tried.
The only thing "salts" do is prevent rainbow table precomputation, but it's just a quirk of the late '90s and early '00s that "rainbow tables" ever became a mainstream attack method: one bad Microsoft password hash and a series of bad web applications. Long before the MD4 LANMAN hash was ever released, people were breaking salted Unix passwords with off-the-shelf tools, on much, much slower computers than we have now.