A key feature of cryptographic hash functions is that they should be very fast to create, and very difficult/slow to reverse (so much so that it's practically impossible). This poses a problem with passwords. If you store sha512(password), you're not doing a thing to guard against rainbow tables or brute force attacks. Remember, the hash function was designed for speed. So it's trivial for an attacker to just run a dictionary through the hash function and test each result.
I think it does a pretty good job explaining hashing and encryption, and is worth sharing