It's amazing how people focus on one thing ignoring the entire article.
Yes he moved it with a CD in the drive.. Of course that was bad. But they didn't do that during the actual scratch test.. That that point in time he was only demonstrating that thing vibrates like a washing machine and that the vertical position makes it worse.. Open your ears!
Just like the tech support told the mother and the man said in the video, the thing vibrates so it needs to be as stable as possible.. But, based on the tests they did, on some cases the vibration of the machine in addition to the cheaper DVD Drive, the optic head can hit the DVD and scratch it..
It's that simple..
Also of course MS is happy to help replace RRoD consoles.. They had to to avoid the massive class action lawsuit.. But with how subborn they were to replace RRoD consoles before the threat of the lawsuit, they are even more subborn with the scratched disk issue now.