- this has to do with a vulnerability in how ETH transactions are written, in that they are able to include recursive code

This has to do with a vulnerability in how DAOhub implements its structure. The quantity of Ether you hold is unaffected. Obviously, market forces are stomping on ETH right now but if you have no ETH in DAOHub, your ETH is inviolate.

- My ETH wallet is unaffected because afaik I'm not connected to the DAO in any way.

Correct.

- As a result of this vulnerability I can expect to see a drop in the value of ETH

And have seen, no doubt. Thing is, cryptocurrency is volatile as fuck so it's dropped back to where it was, what? 5 days ago?

It'll be interesting to see what happens because Mt. Gox was a big black eye for BTC, as was Silk Road... but since the exploit can't be claimed until mid-July (because of how DAOHub is implemented) there's some time to figure out how to deal with it. It's entirely possible that ETH will come out the other side of this looking better than before because the crisis, so far, looks to be managed in a less opaque, more recoverable fashion.

I got money in DAO. But then, most of my ETH was purchased at under a buck so it's all play money to me. The crazy gains are due to the crazy risks and you win some, you lose some.