longer passwords don't hash to longer values (within any reasonable variation of order of magnitude in input size). That would defeat the purpose of hashing
Still, permutations longer hashes don't require substantially more space. Password storage is a completely trivial fraction of total storage -- Compare to a single photo, or a video!
And further still, they don't need to _store_ all the hash variations
Wow, it slipped my mind entirely that you could do the permutations when you create the new password but before verifying, rather than after creating a password. That's a great idea, and embarrassingly obvious in retrospect.