Once upon a time, it WAS easier to get your hands on the entire list of user accounts and their hashed passwords. In earlier Unix systems, before security got as serious as it is now, all this was stored in the file /etc/passwd, which was a PUBLICLY READABLE file! There was no attempt whatsoever to keep secret the list of hashed passwords.
BTW, the plain-text passwords have NEVER been stored, in any serious real-life system that I know of. Only encrypted passwords are stored. That is why, when you forget your password, you can never find out what it was. At best, you can be given the opportunity to create a new password for yourself. (That’s how it’s done on every web site I’ve tried it with, that has a “Forgot your password?” thingy.)
The Unix login procedure did use the trick of using an algorithm that was slow (meaning, a substantial fraction of a second to do one encryption). This at least put a damper on people stealing the file, and using brute force to try cracking passwords.
There was another catch: The brute forcer could encrypt each “test” password, then compare that encrypted result with each existing one in the entire stolen password file. Thus, if you tested “Morg3nSt3rn”, you would encrypt it ONCE, then you could quickly test if ANYBODY in the whole password file has that as his password. Since lots of people used common words, that was a big boon for password hackers.
To protect against this, they invented “salt”. Essentially, when a user creates a new password, a random number is generated (in a range of 1 to 1023 or something like that, for Unix), and that is used as part of the encryption. Thus, a password of Morg3nSt3rn could get encrypted in any of 1024 different ways. The random number, in some relatively plain-text form, also gets stored. So when the user tries to log in later, the authenticator can encrypt his password again the same way to compare with the stored password. But this prevents the hacker from encrypting Morg3nSt3rn just once and comparing that with all passwords in the whole file.
Today, the passwords have been removed from /etc/password and placed into a separate file which is highly protected.