Yes, I know the password is not stored, the hash is store, that was a slip on my part.
Standard encryption would work, but all the extra encrypting and decryption need every time the data is accessed would degrade site performance. And i predict it would be a big performance hit.
Evidently, Ashley Madison had enough information on their users in their database that it has really screwed a lot of people. There is some responsibility on operators to keep such personal details secure, and there are court decisions to back this up. Ashley Madison is likely to lose the lawsuit against them. One member on this site has spoken of HIPPA regulations; which is along the same lines. I think we need to drop the idea that Dolphin can run on a share server; I doubt if most sites running decent hardware would see that much of a performance hit for encrypting personal information.
Maybe it is all the H-1B workers that are at fault, it seems that anyone can be hacked these days. If someone can gain access to the federal employee database and basically cause millions of people to be forced to constantly worry about identity theft, I think the issue is very real. Stolen data is worthless if you don't have the key to see it.