It still reads "Basic Paxos handles a single failure; it can be extended to handle multiple untrustworthy nodes (the Byzantine generals problem)." which is incorrect.

The correct statement is "Paxos handles the failure of a minority of nodes" or "Paxos can make progress if a majority of nodes is alive and connected". Paxos does not deal with nodes that do not follow the protocol (ie. lie, have been hacked, etc, this is what 'byzantine' means). Paxos only deals with non-byzantine failure.