the "security problem" was a mail-server combined with unsecure hosting password-reset workflows.
genjix said the code quality was poor (ZT said otherwise)

and please dont forget that they lost parts of their database. i guess this is the main problem as it seems they already have all stolen funds replaced.

i really hope that bitconica comes back - but i am sure they'll recode it in a well-known (by them) language.
i would really like if the "new" bitconica uses mtgox and intersango for hedging (*hint* we love low spreads)

but please keep the ease-of-use ZT was able to build!