Adult stem cells aren't the same thing as induced pluripotent stem cells (iPSCs). Adult stem cells are stem cells that are isolated from differentiated tissue (bone marrow, liver, blood, etc.) whereas embryonic stem cells come from the inner cell mass of a blastocyst (a very early stage of development at which the embryo is a hollow ball of cells). iPSCs are differentiated cells that have been de-differentiated by artificially causing them to express a few certain genes. They seem to function exactly like (or pretty damn close, anyway) embryonic stem cells.
iPSCs caused a lot of excitement when the technique was first reported a few years ago because (1) they provide a way to get embryonic stem cells(ESCs) easier and without the ethical issues of ESCs and (2) perhaps more importantly, the method provides a way to essentially produce ESCs from other cell types. This is especially important for therapeutic applications, because they could be derived from a person's own cells and therefore not require immune suppression as ESCs would.
This news is rather troubling. The fact that these genetic problems were found in both ESCs and iPSCs may prevent the use of either one for medical therapies. Yes that's right, either kind of cell. Even though iPSCs have more genetic abnormalities than ESCs, the fact that they're seen in ESCs as well is a problem for their use.
I know a number of people doing research in this field, and I've been considering jumping into it myself, and if this turns out to be an insolvable problem it will be disappointing, to say the least, to many of my colleagues. The leaders in the field are just now figuring out how to produce iPSCs without any viral vectors--meaning that they can be made without leaving anything behind in the genome from the experimental manipulation. In other words, the technology is just getting to the point where these cells could have potentially replaced ESCs in any medical therapy (assuming there were any non-experimental therapies utilizing ESCs). This news is a serious setback.