I think that the most important thing everyone should remember is the restrictions the 802.11 group was under when they defined WEP. US regulatory export controls would not allow anything stronger. It would have been restricted as "munitions". The 802.11 group could have defined something stronger but that would have killed its market viability. If anything, this should be a clear example of why the goverment regulatory controls over encryption can be a bad thing.
As it is, when the US relaxed its controls, the 802.11 TGe started work on improving the security.
Its pretty easy to sit around now and bitch about what is shipping in products but you have to look at all things to understand why 802.11 is what it currently is. Don't piddle around bitching that they did the "wrong" thing. The 802.11 working group was/is made up of some very bright individuals from all over the world.