Blowdart is right... as much as I am very happy to see people defending us, this was our mistake. We were carefully running the body through anti-xss routines and forgot the title. (then we fixed the title in server-side rendering, but not in the JSON data we send down in the AJAX view... deployed Nathan's code fix for that this morning from a hotel room in Coeur D'Alene, Idaho ).
I would have preferred an email and less annoying ways to 'try out' this security hole, but in the defense of the people who posted html, css, and JS hacks... no one actually posted an exploit. No one did anything actually malicious and they could have, so let's cut them some slack.
We were already using the AntiXSS library, just not using it consistently ... and I haven't tested out the http handler style option that is also available, but I think we'll take a look at that soon. I'm going to also look into making a staging version of C9 public. The main purpose will be for our testing of major changes, but it would also be a place where you would be welcome to try out any hack you had in mind (extensive DoS wouldn't be appreciated, because even if we are not in any way 'hacked' by that, it would still cost bandwidth and availability of the staging site... not that I can stop folks from trying, but I thought I'd be clear about what we would consider 'ok testing')