10000 * 1s = ~2 hours cpu time, but that's a terrible password -- common words plus 3 digits means 1000 * 10000. 26^6 * 1s = ~10 years CPU time -- a few thousand bucks on EC2 -- that's getting better for what is still a pretty weak password. In any case, straight MD5s are super-fast. At 1e5-1e6 MD5s/second or more on a modern CPU, paying the compute cost for a 1 cpu-second KDF can be several orders of magnitude stronger than MD5(password+salt).
Can you tell me more about allowing the user to cache the derived key within the context of web applications? that would mitigate the limitation I was describing (where how slow you made the password check was limited by what delay a user would tolerate when logging in.)