> There are endless mountains of theoretical vulnerabilities[1], and no one (certainly not including Xen) tries to mitigate them all blindly.
I mean, not nobody. That's sort of the raison d'etre of OpenBSD.
We're talking about a distro that wasn't affected by the latest round of speculation vulnerabilities in AMD's SMT implementation because as soon as they heard about Spectre/Meltdown they immediately realized that SMT was gonna be a giant pile of sidechannels and disabled it on all processors, even the ones that were believed safe at the time. They take "defensive engineering" extremely seriously and will mitigate anything that seems plausible.
That was controversial at the time (extreme performance cost! and AMD isn't affected so why do they have to suffer!?) and they ended up being right, there were more vulnerabilities to come based on SMT leaking data to the other thread.
Nobody mitigates implausible/theoretical ideas that don't seem likely to work, but, a good software engineer certainly should be mitigating things that seem like reasonably feasible extensions of existing attacks, and hardening their environments in general to mitigate the impact if something should pop up. That's not extraordinary foresight, that's just part of the job.
Linus's decision did not follow good engineering practices, and there are examples of other OSs and distros that did do it properly. Xen may or may not not be one of them, it's certainly possible to accidentally fall into a safe path (as AMD likely did on Meltdown, given the broad multi-vendor scope of the vuln), or the "right path" could simply have been easy for them to take, but nobody should be defending Linus on the basis of "nobody could have known". The decisions he made were unsafe and incompatible with a defensive-engineering mindset, and he was told this at the time.
Linus's "why are we doing all this over a handful of broken intel processors" mindset is exactly the trap that OpenBSD avoided falling into. They knew it wasn't just going to be just a handful of broken intel processors, SMT is fundamentally a shared resource and once they saw the basis of Spectre-style sidechannels they knew SMT was gonna be a steady drip-drip-drip of vulnerabilities across all architectures. That was very foreseeable, when I saw the OpenBSD thing at the time it was like "yeah, probably gonna end up being a good call...".
For another "yeah, probably gonna be a problem down the road": KPTI really needs to be enabled-by-default on AMD processors. The Prefetch+TLB attack is still un-mitigated in hardware and AMD relies on KPTI for protection, but still recommends it be disabled by default for performance reasons. The data bleed rate is faster than Meltdown and it's really past time to turn it on by default regardless of what it does to AMD's benchmark numbers. It should have been on-by-default in the first place, and now it's actually got demonstrated exploits leaking kernel memory. Another risky, non-defensive call from the Linux tech-leads.