At one place I worked, there was a rule that I had to configure the AIX (a variant of UNIX on IBM hardware) logins to allow three times. Three wrong passwords, the account was locked forever... or until I logged in and unlocked it. So, what you describe is pretty much what I worked with, except the password was the same, and din't change every time.
What you had sounds a bit like SecurID. You entered a number from a device, plus a 4-8 digit PIN, and if one fat-fingered it more than once or twice, you were locked out for good.
SIPRNet and NIPRNet are US government internal networks, so they can have traffic communicating between sites that don't go over the Internet. NIPRNet is for unclassified stuff, SIPRNet is for the secret+ stuff.
I wonder about the concept of a "BIPRNet", run by either the US government, or perhaps a telco, and dedicated for business traffic that shouldn't be available on the Internet backbones. It would be a closed network with all connections pre-arranged in advance. On one hand, I do understand the government and privacy, but on the other hand, having a national network that runs on separate wires for crucial business transactions would add a lot of security.
As for Apple getting hacked, I'm glad this happened now. Come the next release of iOS, one can lock down their iPhone or iPad so it will not activate unless they enter in their iCloud account name and password. The bad guys having access to iCloud's userdata would mean they could be able to reset and activate stolen Apple products to sell.