You can still have security even with a single flat address space, provided you create some capability model or enforce communication boundaries in some other way. From then on memory protection is on a different level than the process.
Indeed. I wasn't suggesting it was an unsolved problem. Just that it's not part of TempleOS. Same with file permissions.
I have no idea if it's something that Terry has thought about but, from what I've read, it's just not a priority: he's been writing a single-user, network isolated system.