Yep. I believe the idea is to trick the browser into believing that you're interacting with the third-party site so that they get first-party treatment with respect to cookies and such.
I'm not sure if it's still true, but at one point, submitting a form (even via JavaScript) counted and let the site store cookies.
That's already the case, isn't it? It's just that embedded parts by a 3rd party can set their own cookies, which can be read by the 3rd party whenever it is embedded in any other page.
But, if the site is using only HTTP and cookies, there's no reason not to first make a request to the login page with the username/password and retrieve the cookie via the "cookie" header that comes back... Did I totally misread the article, or was it just dumb?
You'd need to visit a page that exploits JS to make those connections to get that cookie. Afterwards, I guess it depends.
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