Various technological and security blog commentators have taken up this story (hardly really news, per se).
The situation is far worse than this, as mere web cameras are not the only "real world" devices now connected to the world wide web.
Increasingly there are cheap controller boxes which integrate various control systems into Supervisory Control And Data Aquisition (SCADA) systems, via ethernet and even via wireless networks. It used to be o that simple "black box" microcontrollers with serial RS232 interfaces, with the set up control menus or data aquistion and logging, via a plugged in terminal or laptop computer device, usually required an engineer to visit remote or widely dispersed customer sites in person. Now the aim seems to be to save costs by doing this all remotely, in many cases via the internet.
A fraction of these systems are also unsecured, either with default or no passwords, and also present a web interface once they are connected to an office or factory or other internet connection.
You can also use Google to search for these systems which include luxury home and office building automation systems which control lighting, heating, curtains, ventian blinds etc., according to people we know who have actually installed such systems (whilst taking the apprpriate security measures, which many of their rivals do not bother with).
There are even some systems accessible via the world wide web, which control video door entry systems, where you can literally open the door at the click of a mouse, after having checked the internal "security" cameras to see if anyone is at home !
Any control systems which are connected to reasonably heavy duty electric motors e.g. curtain opening/closing systems, present a potential fire risk, if attacked via their web enabled controllers, manually or via malware script to continually open and close at maximum speed.