I remember reading Fielding's blogs and work when REST was becoming a popular term. The idea of hypertext links was not as prevelent. It was there with some mention to atom rss and the likes, but it wasn't the main point of REST.
There are some that think any stateless json/http webservice means rest. There are some that think anything with resources and actions on those resources is restful (ie: an sql select statement or your webservice example). And then there are those that follow R. Fieldings work and know what he means by REST.
When I hear a colleague say REST it usually means what you have in your example. So much so, that it would take to much time and effort to correct everyone. That's the thing with language. Once a term is generally accepted among a group to mean something, it's easier to pick up their term than try to change everyone in the group. In rare cases do I run into people that think your example isn't RESTful.
TL;DR: What the author meant it to mean, and what it means to most programmers isn't the same.