I saw the wired article as well (blogged as you did) and I'm seeing more and more infections than ever before. It's sad to see that so many people are willing to take advantage of others in hopes of making a buck here and there.
I think the biggest issue right now is that nearly all AV/Antispyware is missing a lot of the Fake AV floating around right now. Maybe someon will get off their butt to help detect this stuff.
With regards to fake AV, there are different problems. Often tehy seem to be installing classical malware which is detected by classical AV-prevention. However, there are not too many different groups behind it but sometimes Law Enforcement in those countries does not care too much.
Having this said, LE does in the meantime a good job to go after the criminals. However, targeted attacks are not run by the groups spreading fake AV-software, it is run by people going for the big bucks
Roger
