Yes, this article is much more lame than it first seemed. Sniffing keystrokes is most useful for stealing passwords. But these guys actually have a horrible accuracy and need to use dictionary based prediction to guess words, which won't work for any reasonable passwords.
E=mc^2 isn't exactly "remedial science". Sure many people have heard of that equation and could tell you what the letters stand for...but that's more from a remedial history standpoint than any sort of scientific understanding of the equation, its uses, or its implications. 13 yr olds definitely don't need this equation.
That's not exactly true. There's a huge demand for inline network encryption and cross domain filtering devices that DO allow Secret/Top Secret data to go out on insecure public networks.
For example, products like this