Is there a real difference (meaning does it have any added [security] value to do it this or that way) in storing password hash as varchar or a varbinary?
1 Answer
Not really.
Storing it as a varbinary will allow you to use characters outside of your current codepage. You could avoid that by using nvarchar over varchar.
Storing it as varbinary will also make the data present in a hexidecimal format, but this is really not any serious level of protection.
A good reason to store it in varbinary would be that it is in fact binary data, not character data - but this has nothing to do with securing the data per se.
Your security will come form using a proper hashing algorithm and properly securing access to the database/table(s) in question, including ensuring that applications with the proper access levels parameterize their queries.