"cyber terrorism is a huge threat , even possibly moreso than physical violence. Such that they can interrupt power grids, water supplies et al..."
hmm. possibly by blowing up computers, but i'd think that would be considered physical violence. if anyone puts the control software for power grids or water supplies on the internet, they're crazy. but there have been standards (c2?) for quite a long time which secures vital systems. and step one is usually to disconnect it from all outside networks.
while the threat of viruses and malicious code is real, the threat is exaggerated if you're thinking of windows pc's as typical. the vulnerabilities of windows were known for a long time, and many were conscious decisions by msft.
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