Sigh...
I guess I should expect this, considering it's the Register and all, but seriously...
1. The DoD maintains seperate networks for seperate purposes. NIPRnet, SIPRnet and JWICS are all physically seperate networks, operating at different levels of classifications. SIPRnet and JWICS are totally isolate, and don't talk to each other.
2. amanfromMars: all DoD personnel undergo random drug testing. Most people get popped for a test twice a year or so. Failure = dishonorable discharge, do not pass go, do not collect $200.
3. The military (Air Force in particular) have a tendency to mix electronic warfare with this whole "cyber" warfare thing; the two are extremely different, where one is concerned with defeating RADAR systems and radio links, and the other more in the world y'all understand. Both are referred to as network warfare, as they involve the destruction or disruption of autonomous agents communicating in a complex scheme. Network warfare is also applied to power systems, lines of communication (roads, railroads etc for you non-mil types) and other interconnected systems. Yes, the brass confuse the hell out of the matter. Meh...what can you do?
4. Dave: agreed, and there is much spending in just the manner you posted on. The DHS is a new, massive department though, and are necessarily incompetent.
5. Finally the intelligence thing: the intelligence community never asserted many of the things stated above, but by the same measure they didn't actively counter the memes as they spread. As always, the reality is very muddy, and the intel people tend not to convey ambiguity very well. Which is very important, as military types are very black/white, yes/no, go/no-go etc.
Carry on.