In recent posts I have blasted Microsoft for playing the "my schwartz is bigger(smaller in this case?) than your schwartz" game with respect to security issues. I also recent published a list of things that Microsoft could do outside of more technology to ease the security burden on their users.
Evidence that they may understand:
They are pushing very hard their "1 2 3 Protect your PC campaign" on all Microsoft properties(except on MSN it seems where it might have the most effect -- Microsoft?)
- Ballmer and Gates are talking about security (I know I blasted them for some of the things they are saying but at least they aren't just talking about Longhorn)
- This morning there was a full page ad in the Globe and Mail(a widely read and respected Canadian newspaper) for the "1 2 3 Protect" campaign -- not a glossy marketing ad but a serious PSA type ad
- There is acknowledgement from both Microsoft and the media that security issues are affecting and will affect the bottom line
- They are going to a once a month schedule for updates(I am not sure if this is a good idea or not but they are trying to make regular updating a habit I guess)
Updated October 28:
More evidence. At least one (non Microsoft) site I have visited is running banner ads promoting the 1 2 3 effort:

Keep pushing Microsoft.