The NP-hard property allows you to reduce any problem in NP to it.
As you stated it, generalizing (or reducing) 3-SAT to another problem proves nothing and is a common mistake for undergraduates learning complexity theory (reducing the wrong way).
To say you generalize an NP problem isn't even a statement that typechecks in the language of complexity.
Reduction on the other hand, is a formally defined term and is very specific in what it means exactly.
If moultano had actually said 'generalize [the problem]' then I wouldn't have even left a comment, because everything you have said is correct, I just don't think his statement needed that clarification. Now, however, I'm interested in whether the word 'generalize' can be used with respect to algorithms. (<--- someone not in complexity theory)
You're wrong. 3-SAT is NP-complete.
Quoting Wikipedia:
"But if any single problem in NP-complete can be solved quickly, then every problem in NP can also be quickly solved, because the definition of an NP-complete problem states that every problem in NP must be quickly reducible to every problem in NP-complete (that is, it can be reduced in polynomial time). Because of this, it is often said that the NP-complete problems are harder or more difficult than NP problems in general."
http://en.wikipedia.org/wiki/3SAT#3-satisfiability http://en.wikipedia.org/wiki/NP-complete
Though it's probably inaccurate, that's how I intuit the matter.
It's actually quite accurate, but you can do even better: any other NP problem can be "compiled down" to one 3-SAT statement.