I never said you shouldn't use SSL, you may have read that into my statement. I was simply saying that using SSL does not garentee you're safe. For example you can still be suseptible to XSS attacks even when using SSL.
Yes to have secure transmition of data you have to use SSL or third party encryption outside the browser. However secure data transmition does not make for a secure authentication system. For a secure authentication system you must also ensure that your sessions and/or cookies cannot be highjacked. You must make sure your passwords are secure. There are other bits as well, such as validating data before storing it in the database.
Of course you don't have to believe me: http://www.owasp.org/columns/mcurphey/history.html
Also since they are back on line now: http://www.owasp.org/documentation/topten.html