MtGox made the right decision in shutting off withdraws and not implementing hacks. It's important for this problem to be solved once and for all.
MtGox made a very bad decision in its choice of wording in this press release. It shouldn't have framed this as a "design flaw." The only reason this happened was because of MtGox's custom software. No one else was affected. By definition, that's not a design flaw.