"Black hole" is not really an obscenity in Russian as much as it isn't in English.
But the paper you quoted does seem to explain the logic for this term's existence:
"The resulting system has been variously termed “continuing collapse,” a “frozen star,” and a “black hole.” Each name emphasizes a different aspect of the collapsing system. The collapse is continuing because even after an infinite time, as measured by a distant observer, the collapse is still not complete. Rather, the departure from a static configuration of Schwarzschild radius r=2m as seen by a distant observer diminishes exponentially in time, with a characteristic time of the order of 2m, or about 10 microseconds for an object of one solar mass. The box explains the purely geometrical system of units employed in general relativity. In this sense, the system is a “frozen star.”
In another sense, the system is not frozen at all. On the
contrary, the dimensions shrink to indefinitely small values in a finite and very short proper time for an observer moving with the collapsing matter (see figure 3). Moreover, a spherical system appears black from outside; no light can escape. Light shot at it falls in. A particle shot at it falls in.
A “meter stick” would be let down in vain to measure the dimensions of the object. The stick is pulled to pieces by tidal forces, and the broken-off pieces fall in without a trace. In these senses, the system is a black hole"
So this seems to be an international term, and indeed both the Russian wikipedia http://ru.wikipedia.org/wiki/%D0%A7%D1%91%D1%80%D0%BD%D0%B0%... and English-language one mention it.
Couple of other hits in search do mention that the term was used in 1960s - which probably explains the reason why it does sound a bit strange :-)
Anyway, it was fun to do this little investigation, thanks!