Glass might turn into something useful in verticals now that aa16z is involved ...
I find the "don't be a dick" comment pretty funny given my work on internet identity. Presentations
Here is a video of a talk I did in 2006 on Identity 2.0
http://www.youtube.com/watch?v=RrpajcAgR1E
I was hoping for a little more discussion about online identity besides a plug on a people discovery service. Oh well. Identity 2.0 is still a long ways away ...
The title of this story is correct -- the real issue of the hack was the password reset policy -- it was not an authentication issue. Even with two factor authentication, you need a mechanism to reset if you forget your password and/or lose your second factor (whatever that is).
Proving who we are online will continue to be problematic until the internet decides it wants an identity layer. The best way to deal with social engineering attacks is social engineering solutions, not a better mouse trap.