This vulnerability is yet another reason address reuse in Bitcoin clients must be eliminated.
Prior to this, using non-deterministic wallets was either a privacy disaster (single key model) or else a usability nightmare (random key model).
Now anything which encourages address reuse should be considered negligent.
Not really. This is a problem with a specific implementation of a specific secure random number generator (android).
Single-address-per-transaction policy is better for privacy, and also protects from a class of security issues AFAIK. IMHO it is kind of supporting that BItcoinJ dev team hasn't been very keen on implementing proper multi-address support. But then again, it is open source, if you don't like it develop a batch... Myself I don't use BitcoinJ but other solutions.