"Why should the US government trust hackers from a foreign country to develop code to be used by it's military systems. It is a huge concession for DARPA to even allow the use of code developed by a Canadian based company."
Did you think that through before posting? Code under BSD/Open Source can be modified, deleted, and reused wherever, however. Therefore, does it make a difference where it comes from? If it was bad code to begin with, why did they trust OpenBSD to support it in the first place?
Theo has his right to speak against the war in Iraq, and your military has their rights to cancel their funding, even if it seems like an infantile retaliation. However, if Theo had advance warnings, so his team wouldn't lose their money on cancelling their discount plane tickets, there wouldn't be much of a problem.
There isn't a problem now that the conference is still on.
What OS will DARPA use now???