It's wrong. Once again, don't believe Prince McLean's FUD.
Do you think they changed the bold bit before or after Prince wrote the article this thread is based on?
It's obvious they changed it but when?
"Q: I previously heard that you only had 7 days to submit a free update. Has this changed?
A: Yes, we originally communicated that only application updates submitted within 7 days of their publish date would benefit from a free submission. After talking to the developer community and better understanding the dynamics and frequency of application updates, we have decided to extend the original 7-day window and make it permanent. This means that if an application has been previously approved in the marketplace the developer can submit updates to it without incurring any additional fees."