Best thing that Asus could do is disable that function all together - but I'm not sure how this would impact all their vertical services (DDNS, Cloud, Protect, device Apps, etc...)
There are some safe, legitimate use for exposing the web interface to the WAN. That's how I do all of my development: test routers are within my LAN, and my laptop sits on the LAN, in front of the tested router's WAN.
if I remember correctly, thumb support is disabled in Asuswrt's kernel.
Also, newer routers have an encrypted CFE, which makes things harder for exploits to hide anything in there. It's not 100% locked down however, but that's not something I'd feel like discussing in public, just like I wouldn't discuss the (now known) cfecommit tricks supported by previous router generations...
So far, everyone affected had their web interface open to the WAN, which leads me to believe this is the work of bots, not of malicious websites hitting you from the LAN side.
If anyone actually felt like tracking down what is REALLY going on, they'd have to setup a honeypot, with full traffic capture of what goes in and out of the honeypot. Without that, it will be a wild guessing game figuring out the exact vector of attack. Most likely it's a way to bypass user authentication and apply changes to an existing webpage (the Advanced_System_Content.asp page seems to be getting hit based on the list of services being restarted). Another possible way is a method allowing to retrieve the username and password, and then using it to fully access the webui, and opening SSH access.
No way to be sure until proven as such, but I suspect the same hole _should_ also exist in the stock firmware, since I've made it a point to never touch the authentication code in httpd, aside from the obvious security fixes (preventing visible buffer overruns, that sort of thing).
The dropbear flag issue mentioned in this thread are irrelevant to this issue. That port forwarding feature requires you to open an authenticated session, and it does not do what most people think it does (it's more of a port redirection than a port forward, really).