Hidden service connections are TLS encrypted end to end by Tor, in a sense they do not use exit nodes although they still do use nodes that have the exit flag.
Sounds like this guy(OP) read an article then decided that it made him a TOR expert, eh? Skills he ain't.
Edit: Should have said skilled, not skills. Dammit.
The quickest way to spot people who know about Tor from those who don't is to look for the people who call it TOR and assume that they probably have no clue what they are talking about, as only the media calls it TOR and all technical and academic documentation calls it Tor.
edit: upon re-reading your post I have come to the conclusion I should not have been so mean to you, however the point stands