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 ...
Last time I ran a "hot" masternode (there wasn't a remote option at the time anyway) I had to enter my wallet key for starting it (my wallet daemon had to sign messages with my 1000DRK private key).
That means your wallet key theoretically can be stolen.
However, I haven't try to run a masternode since months, so may be my information is outdated. It depends on what you mean by "hot masternode".
This wasn't the case during the first few beta versions. (I closed my masternode and moved the DRK back to the exchange circulation after that change occured. Not strictly becasue of but including that change.)