not sure if i totally understand the implications, but does the fact that anyone can update the values means that the ownership of the domain is compromised? i would guess it's not, in the sense that once they fix the bug then the real owners of the domains can just update again to the right value (in case someone else updated their value without authorization) and no one else can change it once it's patched.
i think it's not a big deal for the owner of the domain to have to do an update after the patch rather than having to cancel all the domain registrations
Yes, the ownership of the domains is compromised - in fact they are equally owned by everyone, so if you have a domain you can steal/grab/claim any other domain at will.
Well, the update I executed means that I now own the d/bitcoin domain - and tracking back trying to fix this stuff could be quite complicated.
Also, namecoin is a math based currency - the math is fine, however, someone forgot to check it before trusting in it. So today namecoin is nothing but an alt coin - it is not a secure registry for key-value pairs, but it could become one in the future, once the rules are switched on. To claim domains backwards becomes inelegant, messy and calls for an authority which we are usually not in favor of...