I vehemently disagree. Well-written C is very easy to audit. Much much moreso than languages like C# and Java, where something I could do with 200 lines in a single C source file requires 5 different classes in 5 different files. The problem with C is that a lot of people don't write it well.
Have you looked at the OpenSSL source? It's an ungodly f-cking disaster: it's very very difficult to understand and audit. THAT, I think, is the problem. BIND, the DNS server, used to have huge security issues all the time. They did a ground-up rewrite for version 9, and that by and large solved the problem: you don't read about BIND vulnerabilities that often anymore.
OpenSSL is the new BIND; and we desperately need it to be fixed.
(If I'm wrong about BIND, please correct me, but AFICS the only non-DOS vulnerability they've had since version 9 is CVE-2008-0122)
> but we can plug this seemingly endless source of bugs which has been affecting the Internet since the Morris worm.
If we're playing the blame game, blame the x86 architecture, not the C language. If x86 stacks grew up in memory (that is, from lower to higher addresses), almost all "stack smashing" attacks would be impossible, and a whole lot of big security bugs over the last 20 years could never have happened.
(The SSL bug is not a stack-smashing attack, but several of the exploits leveraged by the Morris worm were)