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Agree.

I toyed around with the idea of a password risk score.

Password reuse across accounts (with known breach) = 100% Password reuse across account = 90% Unique external password = 30% Unique internal password = 20%

Divided by password complexity... or something similar.

In this way user is encouraged to maintain good passwords by not being penalised (changing every few months, etc).

Of course, this would require something between service and user, such as a password manager.

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I'd agree this probably isn't a great idea, -- it may attract unnecessary attention which would have not already been there.

If an attack is automated (where it may not consider the hostname at all) it will have no effect.

If it is a targeted attack, the attacker will most likely be well versed in the behaviour of default honeypots. As such if you're machine behaves differently (as it almost always will) the attacker will not be deterred. One example of this includes response time of a failed SSH login -- a HP might reply sub-seconds faster than a real system (especially true in industrial environments).