I read that to. It deosn't actually say the disc was hacked more that it was an exploit, plus the 360 uses standard DVDs not Blu-ray. Blu-ray discs are very hackable though. My work did a test on them and there was no problem copying them (I may add it wasn't me and they only tested it as they wanted to start selling blu-ray recordable discs).
Thing is though, the guy mentions that they just let him kill them. If someone were doing this then I'd jump out straight away as if you do all points are rendered invalid. Plus no-one has yet mentioned this on the PS3, but then again there was that whole flying mod due to a save hack.