> This doesn’t mean that the atoms themselves are smeared out like waves; rather, what spreads is the probability distribution of them being found subsequently in a given location
No, it really does mean they're smeared out like waves. Prior to the measurement they are in superposition, relative to you. When your experiment images the atoms, that's a measurement that entangles you with the atoms.
If the observable value takes values in (A,B) then when you get entangled you end up in a state (A, measured A) + (B, measured B), each of which perceives a definite value of the measurement. The whole system would still be (to an outside, non-entangled observer, if you could pull such a thing off) in a superposition which could continue to interfere with itself, but the observer who's inside the superposition will never be able to tell.
Afaik this is the standard interpretation nowadays. Particles are waves (well, in the sense that what we call a particle is usually a momentum eigenstate that evolves in space like a wave), but the measurement process that entangles us to the causes them to come in quantized packets which we call particles.
Maybe I'm missing the point of the article somehow though...