Techcrunch had a post about this particular webcam exploit a few days ago: http://techcrunch.com/2012/02/07/thousands-of-webcams-made-p...

Beyond bug exploits, many webcams are never secured. Arstechnica showed not long ago how easy it was to find them online: http://arstechnica.com/gadgets/guides/2011/01/one-mans-journ...

Around 20 million IP cameras are sold every year, and the figure is growing by around 20% a year ( e.g., see http://www.yanoresearch.com/press/press.php/000597 )

Surely at least some governments know how to access all those webcams...