Schneier has forgotten more about networking and the internet that I have learned in 30+ years. If he is concerned, I'm freaking out.
China and Russia, sure, maybe, but I wouldn't put it past our own guys either.
Do we have an open source "good" botnet you can selectively participate in? Like SETI @ Home, except instead of radio data, you're crunching away on network traffic data to squash other botnets? Sounds like something EFF could be affiliated with.