Now in fairness, being able to make something in my computer start a fire is on a way different level. But we're getting that from "Miller said that it might even be possible to overload the battery so that it catches fire"— he hasn't done it, and doesn't even know if it's possible. My money is on there are some lower-level safeguards to prevent bugs in the firmware from causing fires, even if they do ruin the battery. Li-ion batteries are designed physically with the knowledge that they're a ticking timebomb waiting to go off, and I can't believe that nobody at Apple has started from asking "But what if I were actually trying to make it explode."
>Using that password, Miller said that he has been able to do almost anything from giving false readings to the charger and the OS to ruin the device, to completely rewriting the firmware.
I don't know if it would be possible to make the battery burst into flame or explode. After the Sony battery fiasco, I'd expect there to be some kind of hardware interlock preventing short-circuits. However, it is possible to overwrite the battery firmware to prevent the battery from being charged, thus turning your Macbook Pro into a very small form-factor desktop.
Net result, changing battery firmware can reduce usefulness of battery (higher charging degrades cell life, blow fuses etc) but the packs should have hardware based protection from being a safety hazard