Allen J. Baum says:
I have no doubts that the problem that was revealed will be corrected. I'm not sure it was a good idea to reveal the weakness. Imagine how much worse it would be (in terms of PR) if lots of phones had been deployed before the flaw was found?
Enormous investment has already been made. Furthermore, the EES design has provisions in the processor for only a 128 bit LEAF. Its hardly clear that they can just "patch" this in a few weeks. However, I'll note that Matt felt he had an obligation as a scientist to reveal the flaw and even to state in his paper how to fix it (although thats more or less obvious -- increase the checksum to 32 or 64 bits.)
So, there is a small window in which to take advantage of the PR, and the delay in revised chip availablility. Unless there are some major defections in Congressional support because of this, I don't think much will change; Clipper will become a reality.
I doubt that its that cut and dried. Unless they can convince congress to undertake a major legal change to make a discredited technology manditory, no one outside the government will use it. Perry