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WPA2 has been around since 2004 -- it's really surprising that there's not a newer alternative developed and deployed in the last 13 years.

What is around as a potential next standard?

In the meantime, do we just revert to open wifi and use a VPN tunnel overtop?

We could. What do the remaining 99.999% of wifi users do?
Tell them to use SSLEverywhere (or equivalent) and/or get them onto VPNs, I think.
Good point - given a sane set of trusted CAs (sic!), the need for a trusted last hop mostly goes away.
I think if you're using a VPN tunnel or SSL or SSH already, then this doesn't really affect you (based on an article I read earlier today.)