If they'd just used a vague handwavy word like "encoded" we'd be left wondering what they did to the passwords and it would still be just as legible to the laymen, instead of being given an actually incorrect piece of information.
And a "cracker" is a subset of hackers. So as much as it makes self-identified hackers cringe, it is correct to say that a hacker broke into a system.
"encoded passwords".
So hashing is a subset of encrypting, just like crackers are a subset of hackers.
From a theoretical point of view, hash functions are not only a subset of block ciphers: hash functions and block ciphers are equivalent. You can take a hash function and build a block cipher from it (use a Feistel network). You can also take a block cipher and build a hash function from it (use the Merkle–Damgård construction).
But even if you can build one from the other, saying something is 'encrypted' implies, in even the meanest definition, that it can be decrypted. If the layperson definition does not include this aspect, then it is, well, wrong. Even if you disagree on this point, I would expect a tech journalist to endeavor to use the correct, field-standard terminology, regardless, because as Pxtl says, anyone who is familiar with even the basics of cryptography will interpret "encrypted password" in an incorrect way (i.e., they'll see it as what Adobe did).
By the way, if anyone is wondering how VBulletin forums store passwords... It's md5(md5(password)+salt).
if (md5(password + salt) == stored value) ..
I'd really like to see how this hack works for general knowledge and if it's purely via the script itself and not a server attack.