Just to ensure there isn't any confusion, there were actually two different events there:
- One "Capture-the-flag" event where they used KNOWN vulnerable routers. One of the test subject was an RT-AC66 running an 18 months old firmware (I forgot the exact version they used).
- One where they tested routers with up-to-date firmwares.
The initial post in this thread referred to the latter, so the tested router was supposed to be running the latest firmware available at that time for that particular model.
Unfortunately as pointed out, it's hard to know what actually was compromised with the Asus router in particular, whether it was an issue already patched on other models with newer firmwares or not.
Having observed Asus going through a frenzy of security-related updates last spring, I'm not too worried however. I'm pretty sure Asus will resolve any new vulnerability once they get the complete disclosure. Their track record at updating even older products is fairly good.
My personal opinion: Asuswrt has both advantages and flaws versus competitors.
Advantages:
- Firmware is developed in-house, so no surprise from some dirty external developer (which is what happened with the DLink backdoor - firmware was developed by Alpha Networks, so DLink most likely had no knowledge of it)
- Unified codebase, so a security fix done for an RT-AC87U can trickle all the way down even to years-old RT-N16s or RT-N12.
- No "open management API" of any kind (that was an attack vector with Linksys)
- The vast majority of the source code is available for review (unlike for example Linksys)
Disadvantages:
- The old Tomato code combined with all the conditional code Asus added to support different models is getting a bit messy, and difficult to maintain/audit
- AiCloud is an open door to the outside, with its guts being closed source, so they can't be analyzed by security experts
Mixed-bag:
Just like other manufacturers, Asus isn't always very proactive in updating components. They now regularly update some components such as radvd and dnsmasq, and they also started updating openssl to keep up with recent security fixes, however other bits like Busybox or vsftpd are quite old. Miniupnpd hasn't been updated by them either, but I am not aware of any security issue that was fixed after the version they are currently using.
My personal advice:
If you are worried about security, then I'd recommend keeping AiCloud and WAN remote management disabled, as these are the most sensitive bits, being WAN-exposed. I'm not too worried about UPnP because at that point, if something can manipulate your router through UPnP, then it means you are ALREADY compromised anyway, so you have other problems to resolve. I would also recommend against using the USB disk sharing for anything sensitive. Your MP3 collection might be fine, but don't put your personal bedroom adventures videos on there. Just in case.