If the security at kernel.org has been breached, then I don't know what to think about me, the little guy - who runs a small VPS - or about the small start-ups out there. I guess having secure systems is not that easy after all, and people overlook this or fail to allocate enough resources to this process.
Any system is penetrable with enough motivation or resources. It's just a cost of doing business. Be happy you're under the radar, Sony wasn't so lucky.
The bigger you are, the more servers you have to manage, the more services might provide a way in, the more users have access and might have their credentials stolen... it's actually much easier to be secure when you're small.
Well, the effort that goes into breaking into a system is hopefully proportional to the payoff. This more than anything else is why there is quasi-infinitely more Windows malware than for any other system, or why the idea of a national key registry (back in the Clinton days) was such a horrible idea, the payoff in compromising it would be too high. So hopefully you can scale the resources you apply to security with your profile and such.
It sounds like they got in via a regular account and somehow escalated themselves to root: "how they managed to exploit that to root access is currently unknown and is being investigated."
Simple social engineering of mundane user accounts is not worrisome. Escalating any old user into root is.
After reading the LWN security page for years, I don't consider root escalation as a difficult problem. There seems to be a never ending stream of vulnerabilities. That layer of security is a useful goal but I assume user level access also provides root level access.