Let me preface this that I am having a lot of trouble wording my question. Hopefully my description will help clarify.
I have always wondered if long passwords actually provide you any more security vs. shorter ones when it comes to websites like Google, Facebook, and similar.
I have very, very basic knowledge of cryptography, but it's my understanding most websites have to store the password somewhere, and when stored they are encrypted into some sort of hexadecimal string (or similar). For example, going here and entering a string of any length will always yield a 32 character string.
Now, of course, there are several different type of encryption standards. However, it seems to me, if a user database is compromised on any website through some means, at the end of the day it didn't matter how long your password is, your credentials were still compromised and potentially made public. Your 900 character password wasn't any more secure than someone with "12345678" as their password, both of you have the username and password stolen.
I have seen questions similar to this one, none seeming to ask the same thing though. So my question is that are longer passwords safer than shorter ones even if the encryption/database security used is compromised?
Also, I seem to be assuming there are other methods of compromising user data without a brute-force type method, so please let me know if I'm making some silly assumptions.
Thanks everyone! :)