Microsoft Passport to Trouble

It is very clear that either Microsoft does not have sufficient resources in place to properly review the security of their services and software (it only took me about 30 minutes to come up with the basics of the example exploit, why didn't they notice the same issues?) or that they are aware of the shortcomings but decided that attempting to gain market share was more important than their user's security. Either way, extreme caution is necessary when considering the adoption of Passport technologies and, by implication, any technologies built on top of Passport