As more details of the Barracuda ESG 0 day compromise emerge from both Barracuda and Mandiant, it starts to make sense why Mandiant would recommended a complete replacement of all existing devices.
It appears that upon detection, the attackers managed to quickly deploy SANDBAR, which is a kernel rootkit to hide processes with certain names. This demonstrates the capability of the attacker and with slightly more time, they will definitely be able to enhance the rootkit to not only hide traces of their activity but also make it seem that the appliance has been patched to an unaffected version. Hence, the only surefire way is to physically replace all devices.
These are some possible enhancements that the attackers could possibly do to make the appliance look like it has been patched.
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Once a device has been compromised to such a level, we will not be able to trust the output from any tools running on that system. We will need to do chip-off forensics; desolder the NAND flash chip, mount it onto a reader and read directly from the flash chip. This is a very intrusive process and may not work if there is disk encryption. It would thus make sense to recommend a complete replacement of all existing devices.