OK, I agree that is a completely false statement. The rest of the article is pretty good.
If you assume a linear decrease in battery charge for each full cycle (which it really isn't, but much easier to model in a spreadsheet). Then 80% of original charge after 400 full cycles is approximately 0.8% loss in battery charge per full charge cycle (again this is a simplification, stay with me). This means that after 400 cycles, you are at approximately 80% of your original total charge level. As stated by Apple.
So, extrapolating that out to EOL (end of life) which Apple assumes to be 50% battery charge, it would take approximately 1,000 full charge cycles for your battery to be EOL (according to Apple). It would actually be slightly less than that since it won't be a linear function.
For me, that's 2 to 4 years of use depending on whether or not I continue using the iPhone as much as I have this first full week.