> Until password management or authentication are substantially overhauled on the web, the most optimal solution for protecting yourself is constant, militant vigilance with passwords. I don't know any of my passwords at all, and what's more, I even have randomly generated answers to security questions.

This is a good point. Those "On what street did you grow up" security questions do not increase security. If answered with real answers, they decrease security, since a lot of this stuff can be looked up online. It boggles the mind why a company would go to the trouble of encouraging users come up with a strong password, then turn around and deliberately provide a softer attack vector.