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its even worse
Its even worse than this article makes out. It's estimated that several MILLION sites are susceptible to XSS attacks. Just check out www.xssed.com. Even one of networkworld's sister sites (pcworld) is vulnerable : http://www.xssed.com/mirror/6947/
It's not like there isnt a cure; there is, and its fairly easy to implement. But web app designers/programmers need to be educated, and need to take these risks seriously. In addition, upper-level management needs to be educated of these risks, and then give their developers the resources, training, etc. needed to make their apps more secure.