It's being used in the sense that you're not going to get the full potential out of the sub(possibly).
No one is saying it's bad for the woofer, and the amount of power you really need is install dependent(ie: you can use a bigger box, like Buck said, to increase efficiency and lower mechanical power handling...at a cost though). But what if someone has limited space and can only fit 2.5ft^3 for one of these subs(or just doesn't want to deal with the drawbacks of a larger box), and wants to throw 500 watts on it...would you not agree that the sub isn't being used to it's full potential? Let's take it even further, since you said nothing can be underpowered...put one watt to one of these subs and what do you get?
If the myth you're talking about is a sub being damaged because it's not receiving enough power, then yes, that's obvious...I don't think anyone here was saying that at all.