Sure you still get some of that today. An especially old fashioned company, or in this case naive college students but overall things have shifted quite dramatically in favor of disclosure. Dedicated middle men who protect security researcher's identities, Large enterprises encouraging and celebrating disclosure, six figure bug bounties, even the laws themselves have changed to be more friendly to security researchers.
I'm sure it was quite unpleasant to go through this for the author, but it's a nice reminder that situations like this are now somewhat rare as they used to be the norm (or worse).