ruud said:It does not completely eliminate them, though (which would be virtually impossible).
Also do note that one of the vulnerabilities addressed by today's security update was a buffer overflow...
As you mentioned, if you look at today's OS X v10.4.1 security update, you will see that buffer overflow holes, are not a problem that only affects Intel based machines. The Execute Disable Bit does make it more difficult to execute malicious code - which is a good thing.
However nothing is perfect. The reality is, modern software and operating systems are fallible, it is just the inherent nature of complex code - which is created by fallible humans.