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Naive key stretching vs PBKDF2

What are the drawbacks of using a trivially simple key stretching approach such as the below Python example, compared to something like PBKDF2? The purpose is to harden an AES-encrypted file against ...
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Does stretching a hash increase a denial-of-service (DoS) risk and does brute-force protection mitigates that?

Disclaimer: I noticed several questions on this site but none really answer this two questions directly. Therefor I do not consider this duplicate. Personally I really like the article called Some ...