Theory of hashing is a one way functions. This means that if you have computed a hash of a password, you cannot get back the password in plain text by the hash.Converting a password to var_binary is not hashing the password at all. Just convert it back to character and see what you get.
Code:
CREATE LOGIN [TestUser] WITH PASSWORD = 0x01000784DC016AECF087428746D6FD898C39B834CBBD3E82B41A HASHED, SID = 0xC5F52518CC4018458154FBFF79831CFC, DEFAULT_DATABASE = [TestDB], CHECK_POLICY = OFF, CHECK_EXPIRATION = OFF
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