Earlier quoted context omitted.
Of course it wasn't absolutely secure, but it was designed against large scale interception and against the insider threat of lawful-interception orders.
Not really, no. There was nothing preventing the NSA from running lots of supernodes, just like they run lots of tor exit nodes. If it offered anything at all, it was a false sense of security.
Especially back then, 10 years ago. Even people like Bruce Schneier didn't suspect the NSA would as ruthless as recently revealed.