I hate to say this, because it reflects badly on the industry, but in 1997 or 1998, there was at least one example of an Israeli company that was offering a free all expenses paid trip to Israel for virus authors as part of a contest. It has been quite awhile ago, but it has been done before. So, saying it never existed is revisionist history at this point.
What we need is for American companies to accept something like CARO and behave ethically. It seems almost no one in America even heard of the Wild List or CARO or a whole lot of what they should know in that regard.
So, there are like what 5 *nix viruses (a lot of trojans and exploits though if you don't patch and watch closely) and something on the order of 55,000 Windows PC Viruses, Worms and Trojans.
Truth be told, watching the wild list gets most of it done though.
But let us not say that there never was a connection - there have been in the past, and there are probably still some today. Most of what you have in the AV force though is reactive today and not proactive enough.
Just my two cents.