Skuzzy,
I agree with you 100% except that almost everyone I know, including XX who was teaching Cisco networking at Cisco and is now the network admin for a major international corporation, has had their linux box rooted. I've been the subject of occasional intense port probing that is clearly looking for services a typical linux installation might have, and some of those probes are "brute force" attempts looking for overruns and other more insidious vulnerabilities. If I had time to monitor and patch it daily, I'd be using a *nix based router/firewall but since I don't, I am going with the "next best" solution, a hardware based router/firewall and a software watchdog inside the LAN to catch anything that originates from inside the LAN or sneaks through the router.
BTW, XX found out he'd been routed when a software firewall INSIDE his own lan noticed his linux box attempting to infect the other computers on his lan while keeping a back door open to participate in DDOS attacks, so even with a good firewall it seems logical to have some sort of internal watchdog operating inside the LAN. I personally use BlackICE defender because even with it's limitations, it's interface is extremely readable, with a real-time display of external hits, ip addys of attacker and victim, ports used, any passed parameters, hit count, and if it recognizes that the attacker is using a known exploit, it identifies it. It's very clear and makes a fine second-layer for a non-expert.