Warning: Malware Based on Chrome is Real

So what are they supposed to do about this? Even if you move legit security warnings out of the browser window and into the chrome, I don't think it does much to stop this sort of attack.

What about making the address bar red when there is a bad site, similar to how the address bar is green for ssl sites?

Sure, but how many of the people who fell for the current scam would have noticed that the address bar was it's normal color?

You could put a notice on the bottom of real ones telling the user to look at the address bar.

It is phishing after all and a clever one also. People need to be more paranoid while browsing the internet.

What the hell kind of headline is this?

It's a webpage that looks like a legitimate warning. It's basically a play on traditional phishing. Saying that it's "malware based on chrome" is fear mongering and by implication is inaccurate.