It all doesn't matter in the end. No matter if the people sentence GeoHot to death (wouldn't recommend it, perhaps Anonymous will get angry) or less worse, the code is out there. Everybody's got it and everything can be runned on it.
But they are right: Instead of pouring millions into blocking the hackers, give half a million to the hacker to come up with a very good security procedure and audit it by giving it away to the internet to audit.
Most companies who wrote out hack competitions have both earned the respect of the public and the people with the real skills, because of their honesty.