This is really important news. It was mostly social engineering hacking, but it seems to have been very clever. It's important to notice that it wasn't a flaw in two factor authentication itself, but on the recovery options.
I really hate the recovery options. I don't know what they are there. If I forgot my password, my recovery e-mail, I don't want to answer questions to be sure it was me. Who knows how this exactly worked, but it sure seems to be a problem with that logic.