[alanfalcon]

This is a tad off topic, but the iPhone authenticator was added early in 2009 (see: http://wow.joystiq.com/2009/04/03/battle-net-mobile-authenti...) and the hardware fob was already in use well before that, with the same stringent identity verification methods in place in case the authenticator was lost.

Blizzard offers the best of both worlds in my opinion: the authenticator is cheap/free and optional so you can choose how secure you want your account to be. Though, as noted, it's expensive for Blizzard to restore all the hacked accounts so they have incentives (free Corehound pet, for example) if you opt-in to have an authenticator on your account.