Joanna Rutkowska blogs that this even circumvents the famed NSA Secured-Edition Linux sandboxing of Xorg.
Details all in here.
Biggest ramification is that this is not a bug, but a Xorg design feature!"
Link to Original Source
"You don't go out and kick a mad dog. If you have a mad dog with rabies, you take a gun and shoot him." -- Pat Robertson, TV Evangelist, about Muammar Kadhafy