Most people agree on that. Where opinions differ are in how the account was hacked -- originally, we and a few other sources speculated that the Authenticator had been somehow removed from the account in question. But now Belfaire has responded (we believe to the incident in question, though a link to our story was removed from the original post), and says that as far as he can tell, the Authenticator was not removed from the account. In fact, after the password was changed back, the Authenticator's serial key was asked for and given, so the Authenticator remained attached to the account the whole time.
Of course, that just leaves the most important question: how did the account get hacked? We've heard all kinds of various insights as to how the Authenticator works (it only lasts for 60 seconds, supposedly each key can only be used once, so there's no way a keylogger could nab the Authenticator code and reuse it), but the fact remains that the person we're talking about was using the key, and still got hacked. One hack out of all the Authenticators sold so far is a terrific record, and could prove that, statistically, an Authenticator is good as 100% security. But the fact remains that this person got hacked while using the key (however it was done), and if security can be broken once, it will be broken again.