Hi Rob,
Got your points accross and agree fully with them: that's why it's important to discuss them for 1.5, which is another class of beast than 1.0.
I like your global approach very much.
1.5 is playing in another league when it comes to its design, structure, and intended developpers. 1.5 requires good understanding of object-oriented programming among other things, which is less the case for 1.0. So, the level of successful "non-Joomla 1.0-legacy-mode" 3PD developpers will be very different, as well as their number. Also the new J! 1.5 framework, when used, allows to safely handle data in its original state. So yes, agreeing with you.
For pure 1.5 J! applications, magic_quotes_gpc 0 is better and should not be less safe against developpers' bugs than magic_quotes_gpc 1 as long as
only J! application framework is used.
As you agree that
for 1.0, that magic_quotes_gpc 1 is better and safer, I think we are in line, and gave a simple clear answer to the community.
As a matter of fact, in my larger PHP applications, as developer, I hate having escaped non-raw variables, and prefer escaping according to the database used (e.g. mysql is ' -> \' and postgres ' -> '' (2 times "'") ) at database storage time than carrying over the escapings and changing them at database layer if required (e.g. \' -> '' for postgress).
But for small plugins and extensions, which are often written by less defensive or experienced developers, it's safer to give them safer escaped variables. And one of the big success factors of Joomla! 1.0, compared to more complex systems, has been that it's easy to change code or add code without deep programming knowledge. The result is there: 700+ extensions, but not all 100% cleanly written and secure.
Only question yet open for a consensus is that for a probably longer time than we expect, people will keep 1.5 legacy-compatibility setting ON to run existing 1.0 Joomla 3pd extension. So what should be the recommended setting be for Joomla 1.5.0 ? In light of legacy 3pd extensions, magic_quotes_gpc 1 is better security-wise, while magic_quotes_gpc 0 is cleaner for 1.5 core and pure 1.5 extensions.
I'm "a little" security biased, as you know

, so it's a very good discussion. Sorry for being sometimes a little technical (tried to put those in separate paragraphs). No pun intended at all and didn't feel any from anybody either
