What is so surprising here? The DOD is the largest funder of research grants in the US. Pretty much every university is doing research for a US agency from cyber security to lasers for missile defense. I find it very hard to believe that this is the firs time a university was conducting computer security research on live targets.
Whether or not it's surprising is perhaps the least interesting point for discussion. Universities have a responsibility to conduct human research ethically and I hope we hear a lot more about how this research in particular was conducted. This could have endangered lives depending on how it was done, and I'm quite sure the ends don't justify the means unless it was specifically done in a way which protected the anon…
which means little given the laws of nature, all that matters is what people end up doing and measuring that statistically. If statistically speaking most people aren't ethical then that's what we'll get. This whole idea that people are in control of their actions or have any freedom whatsoever given what we know about the laws of nature has to go.