I've been looking at various descriptions of distro security policies lately and I'm actually not really decided on what the "right way" is. I agree that if you're an sole operator, you need to monitor the upstream project, disclosure lists, and assigned CVEs. If you're in a larger company, you probably need a team to handle that.
And on one hand side this looks like it makes the issue of the distro choice moot. If you keep on top of announcements, you can either upgrade packages, or port back the patch yourself, or just repackage the latest version. But having the right distribution makes things simpler - you get the benefit of someone backporting the patch earlier and doing a coordinated release. Or maybe even you get a pre-disclosure notification. One way or another, it makes things simpler to rely on someone else's work even if it's not guaranteed that it's always available and complete.
But on the other hand, getting a rolling distro like Arch you get new versions by default. This means your backport is going to be way easier if you have to do it yourself. For example you have to only go 2.3.4->2.3.5, not backport from 2.3.5 to 1.2.3 because that's what's in stable. Arch/Gentoo also had the benefit of releasing grsec kernels which considerably limits the scope of kernel exploits (and userland too to some extent), but Debian joined them lately.
I guess if I had to admin a small service on 5 of so servers full time these days, I could be temped to actually go with some rolling release distro. At larger scale I'd prefer the benefit of using the upstream work. At not-full time job I'd still go with Debian/Ubuntu/CentOS to rely on the automation of common cases.