Mike give me some credit here. ;) I edited the Taillow I had legitimately. This worked fine with the Sucker Punch Nidoran F test I did, in addition to some other random ones like Shinx. The Blaziken did some back illegal, though. However, there is no point to breed it - you encounter your... wait hrm.
I might have to do that test again, since I "caught" it in High Link Forest like the Taillow and Nidoran, but if the Torchic comes a special way like Wi-Fi or something rather than the same distribution method, perhaps that is changing it.
There is also the fact that perhaps the above post was mistaken when he said he battled Drought Ninetales.
EDIT: @Mario With Lasers: I highly doubt its the hacking that is stopping people, but more what the database is allowing. I have plenty of legal hacks that have passed the check, and judging by what the Taillow I have looks like it is very straightforward to hack Dream World Pokemon. And yet I don't see any at all on Random Wi-Fi. A bad hack (capture info, etc. counts too, and its way more strict than DP/ADV) in your party will stop you from playing a Random Wi-Fi match, both ranked and unranked. A bad hack anywhere on your game stops you from doing Game Sync with Dream World.