There was a similar issue in an early D7 beta, where apostrophes in comment text were not properly escaped, and it was fixed. I'm sure they will fix this one too sooner or later.

Things like this are everywhere on the internet. One that Major League Baseball hasn't figured out how to fix yet, is posters on MLB message boards defeating the censored word filter by preceding text with the '<' character. Try it, you'll be able to post whatever obscenities you like. MLB message boards are hosted see more by Prospero, and you can do the same thing to any message board hosted by them... MLB... marthastewart.com... etc. Of course, you'll probably get banned by doing so, but I think it's kinda funny that they haven't been able to fix this for at least 3 years.