It's definitely not an urban legend, there are at least 2 DAN reported incidents so far.
http://www.danap.org/DAN_diving_safety/polymorphic_crystallisation.php
Just wanted to point out a few sections from the DAN article you posted:
"However, it would be foolish to assume that this deterioration is limited to external 'braided' hoses. In the past, our hoses comprised a rubber inner hose, then a single braid layer for reinforcement, and finally a rubber, outer 'sealing' layer. In the modern era, the rubber inner hose is sometimes replaced with typically polyurethane or nylon hose (referred to as thermoplastic). The middle or reinforcing layer is a polymer filament braid, and the outer layer either a second braid – which as the advantage of telling you when inner hose has a leak, or a polyurethane or a synthetic rubber outer sealing layer.
The reality is that the newer, second stage hose with a thermoplastic inner layer may be vulnerable to degradation. In our industry, 'newer' means possibly even up to 15 years or longer. This does not, however, apply to synthetic rubber internal layers, which appear to be impervious to this phenomenon."
"the internal section of all newer hoses which use a thermoplastic inner layer appears to be uniquely prone to 'polymorphic crystallisation’"
"A physical examination including squeezing the hose every couple of inches to assess whether the hoses exhibits the same degree of flex should indicate if all is well. Any indication of a change in the resistance while squeezing along the length of the hose would be good sign that all is not well.
This test, on the braided hose, is in fact much easier to perform than with the harder, outer 'rubberized' hoses."
I would also like to point out that various hoses (rubber or "braided") from different manufactures have several choices of material for this "thermoplastic inner tube". Just like most things in life, there are various levels of quality (and usually cost) to choose from. For example, in general, TPU might be a better choice than PVC. I know that there are hoses on the market that use both materials (SubGravity uses TPU). PVC will tend to discolor and harden over time, where TPU does not.
Overall, I would agree with the DAN article that hoses should be checked and replaced often enough to avoid most problems with them. I also agree that it is foolish to assume that this problem is specific to "braided" hoses. To me, the simple answer is to replace your hoses every few years or more often if your inspections (or conscience) dictates.
Hope this helps anyone who reads it!