I'll join you in the fight against weak hashes.
OWASP has a Password Storage Cheat Sheet (https://www.owasp.org/index.php/Password_Storage_Cheat_Sheet) with some guidance; they recommend 64,000 PBKDF2 iterations minimum as of 2012, doubling every two years (i.e. 90,510 in 2012).
Note that a storing a long, cryptographically random salt per-userid is always basic.
Note that having a widely variable per-userid number of iterations and storing the number of iterations along with the salt will add some complexity to cracking software, and may help preclude certain optimizations. For instance, "bob" gets encrypted with 135817 iterations, while "alice" uses 95,121 iterations, i.e. perhaps a minimum of(90510 + RAND(90510)) for 2013.
Note also that all of this is useless if users are allowed to choose weak passwords like "password", "Password1!", "P@$$w0rd", and "P@$$w0rd123", all of which will be found by rules based dictionary attacks very quickly indeed (the latter is simply "password" with the following rules: uppercase first letter, 1337-speak, add a three digit number to the end). Take a basic dictionary list (phpbb, for a good, small starter wordlist) and apply rules like this to it, and you'll crack a great many passwords where people try "clever" tricks.
Therefore, when checking new passwords, don't just apply "All four of upper, lower, number, digit, at least 11 characters long", since "P@$$w0rd123" complies with this seemingly very tough rule. Instead, use that basic dictionary list and see if basic rules would crack it (it's a lot simpler than actually trying a crack - you can lower-case your list and their word, and then simply write code like "if the last 4 characters are a common year, check all but the last four characters against the wordlist", and "if the last 3 characters are digits, check all but the last 3 characters against the wordlist" and "check all but the last two characters against the wordlist" and "De-1337 the password - turn @'s into a, 3 into e, and so on, and then check it against the wordlist and try those other rules too."
As far as passphrases go, in general are a great idea, particularly if some other characters are added to the middle of words, but if and only if they're long enough, since you're giving up a lot of possible combinations.
Note that modern machines with GPU's are up to the tens of billions of hash iterations (MD5, SHA1, SHA-256, SHA-512, etc.) per second, even in 2012. As far as word combination "correct horse battery staple" type passwords, this one is at best a very modest password- it's only 4 all lower case English words of length 7 or less with spaces. So, if we go looking for XKCD style passwords with an 18 billion guess a second setup: A modern small american english dictionary has: 6k words of length 5 or less 21k words of length 7 or less 36k words of length 9 or less 46k words of length 11 or less 49k words of length 13 or less
With an XKCD style passphrase, and without bothering to filter words by popularity ("correct" vs. "chair's" vs. "dumpier" vs. "hemorrhaging") we have 21k^4, which is only about 2E17 possibilities. With the 18 billion/sec setup (a single machine with 8 GPU's if we're facing a single SHA1 iteration), that's about 4 months to exhaustively search the keyspace. If we had ten such setups, that's about two weeks. If we excluded unlikely words like "dumpier", that's a lot faster for a quick first pass.
Now, if you get words out of a "huge" linux american english wordlist, like "Balsamina" or "Calvinistically" (both chosen by using the "go to row" feature", then we'd have 30k words of length 5 or less 115k words of length 7 or less 231k words of length 9 or less 317k words of length 11 or less 362k words of length 13 or less
Even with the 7 length max limit, with this huge dictionary as a base and randomly chosen words, we have 115k^4 ~= 1.8E20 possibilities, or about 12 years if the setup is kept up to date (doubling in power every 18 months). This is extremely similar to a 13 character, lower case + number only password. "300 years" is what most estimates will tell you, but they fail to take Moore's Law into account.