On the Limits of Anti Virus Software

A telling post on the topic.  I recently had to deal with several episodes that were potentially the result of virus attacks.  My installed software apparently did not deal with the problem. A quick search of other similar events found that I was not alone.  The concern continues that we are on the edge of serious viral danger as governments and other well funded organizations build skills in this area.  Are we at the edge of mutually assured cyber destruction?