Microsoft says Firewalls failing to keep out hackers

This is possibly a future classic... It seems that a Microsoft security technology architect named Fred Baumhardt was ripping "Firewalls" at a technology briefing on the need for next generation Firewalls.

"We are all bloody lucky that something hasn't obliterated IT on earth," said Baumhardt. "Firewalls are like retarded routers. They just look at the ports, sources and destinations they like. If a train comes from Gare du Nord [Paris] to Waterloo [London] via Eurostar you allow it to enter the country because you trust it. That's what firewalls currently do. They don't check to see if al-Quaeda is riding inside."

I think Fred is trivializing what is perhaps the most common security problem faced by anyone with an Internet connection. Even Microsoft's own Internet Connection Firewall (ICF) does more than this (but in the case of ICF not much). Which begs the question to Fred; what is Microsoft going to do to address this?