Bad luck Ed.
And to think that I know of some people running hot masternodes on spot instances. Lets hope they've got backups

Are people still running hot masternodes? Why?

What's the issue with hot nodes? As long as your password is strong enough and your firewall is configured right nobody is going to touch your coins...
At least until the next episode of the HearthBleed and Bash bugs.

So what, as long as the wallet encryption holds ...
It's not that simple. If you run with a password protected wallet, you need to ensure that there is no bash history or ps listing that may store (and hence give away) your password. There are ways to configure your MN to minimize this risk, but as another posted on here, don't ever make any mistakes, not even once.
If one day you forget to use
darkcoind masternode start 'head -1' and instead, being in a hurry or some such, use
darkcoind masternode start MYPASSWORDCUZIMINAHURRY , well, 'ps -ef' is going to show your password. It goes without saying that heartbleed and shellshock show just how fragile our systems of security really are.
If you choose to run a hot masternode, I would suggest leaving a conspicuous, non-passworded wallet with some loose change in it (maybe some Dogecoins LOL). If the loose change ever moves, you need to move your 1000 DRK to another wallet ASAP.