This is indeed fascinating! I find myself feeling a little silly that I didn't already know more about the work of people like Siemens and Downes, though I've started learning bits here and there as a product of my participation in our discussion group :) And it bothers me that publications like Wired, The NYT, and the Chronicle are complicit in handing us a warped sense of the history of online learning.
But I do feel like "MOOC" as a term (like all terms) has meaning through its circulation and use, and as such may have been hijacked in some senses but may be "naturally evolving" in others. What I'm certain we do need is more contextualizing pieces from the folks who know - folks like Siemens, Downes, and Watters - so I'm glad she wrote it.