The more interesting topic for me is how the hackers got into the database to begin with. IMO, that's a bigger security flaw than how the user passwords were stored.
This is like criticizing somebody for using "1111" as the combination for a safe inside of a house while ignoring that the homeowner leaves the front door to the house wide open.
Even more interesting is why I continue to use LinkedIn. It's nothing more than a way for clueless and lazy recruiters to harrass developers.