Not even remotely involved with opsec, but sending the password from the client to the server doesnt seem that crazy. It opens you up to people skimning your plaintext password if your connection is not secure, but by that same logic if your connection isnt secure then they can skim your hash. Unless the security on the site is good im sure there is a way to skip the encoding process and log in directly using the hash, so its a relatively small improvement to send the hash rather than plaintext, no? The much bigger issue would be if the server validated it as plaintext, because that would mean the server stores it as plaintext. But if the encoding is done server side, then that would make it significantly harder to crack the hash algorithm.

Im sure im making a mistake with my reasoning here, can you explain it to me?

Edit: ah, i see. I misread your comment.