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How is bitcoin not fungible?
Agreed. Not sure what they are trying to say, but by the definition of the word “fungible” they are incorrect. Is this just FUD?
Would you exchange your newly-mined BTC for the same amount from a MtGox or other theft?
No this is the practical reality of the situation. Technically BTC is fungible but due to it’s transparent nature it becomes not fungible in practice because every coin has a history which may change its value based on what that history is and who is looking at it.
Monero is true digital cash, BTC is not, practically speaking.
Seems like it
