This must be made clear... It's in no way Bitcoins fault. It's a vulnerability that was exploited on a vendor's website. We do not blame credit card companies when a porn site gets hacked and the credit card
details of 1000's of people get leaked. {Well we should, because the credit card system sux}
The Bitcoin protocol is still running fine, even though the website was hacked. It's just a good example where information gets hacked, where a centralized model is used to store it.
The thing that did fail here, was the regulations forcing vendors to collect this data, and the vendor not keeping that information safe.