Regarding Defense Department Security:
I work for a major DoD contractor in the DC area, and have just spent over year in the Pentagon. Believe me, internet security is being adopted in a big way, albeit it has been slow to evolve, but the momentum is building rapidly. My company was forced into adoption of PKI over a year and a half ago, but unfortuantely there hasn't been DoD enforcement of this measure, YET!
Just last week Corporate IT sent out a company wide email on the mandated implementation and download of a little know software company for hard drive encryption, until a senior VP blocked this requirement after being informed that it would cost $120 per download.
I called the head IT guy who had disseminated the encryption email and asked him if he was familiar with TCG or TPM, and he in fact was not, but was very eager for me to put a little informational package together for him on the future of hardare based security that he would love to share with corporate IT.
Bottom line, "encryption" and "internet security" ARE quickly becoming very hot buzz words in this industry, and it should be just a matter of time before it is realized that the future is in fact hardware based, and all these new little security software providers are washed away.