I think the difference is between "let" and "make". Parents of infants who let their babies watch DVDs are not hothousers. Parents of infants who MAKE their kids watch DVDs are hothousing.

I had a neighbor when my DS was little who put her son in a high chair and showed him flashcards. She would give him a bite of his lunch when he got one right. That to me is hothousing. Making a child, far below the expected norm, perform for food (or love or attention or whatever you're withholding).

That being said- a baby that can read may or may not be gifted. I don't think you know until you see what else they can do at an older age.