Rails 3 changes this by always html escaping strings.
Rails' conflation of these types guarantees that whatever the default for escaping, there will be bugs in applications written in/on rails.
[1] http://www.davidnaylor.co.uk/massive-twitter-cross-site-scri...
They should just be sure that they _render_ the application name field appropriately. Angle brackets should be escaped, minimally. It's really not so difficult, Ruby does it with three calls to gsub: http://rdoc.sourceforge.net/rd/doc/classes/CGI.src/M000003.h...
Either way, XSS sucks. Surprised that they haven't plugged this one yet.
I'm curious what people here think of that idea, ie, preventing string injection attacks at the language level.