I, for one, hope that this is not "fixed," but the numbers merely corrected to reflect the actual values.
I am not sure it can be fixed in that way. One thing you should note is that Blizzard appears to do damage to oneself and this damage is actually what determines the strength of the Blizzard. For example, after 10 seconds using Blizzard my health drops by a little (say 10-15 health). The only way I could see Apprentice stone affecting damage output is if the damage dealt is based on damage done to yourself. I even tested this last night using potions which lower Magicka resist and Frost resist to MYSELF and Blizzard damage to enemies increased by that amount.
This also means that Frost resist on your character should lower the damage done by Blizzard, so if you are someone rolling along with Magicka and Frost resists (Bretons, Lord Stone, etc.) your Blizzard will be terrible.
Put another way, I ran a few numbers (theory until I can actually do the test later) and the maximum possible damage one can achieve in this method is around 79,000 AOE. I'll be verifying this probably today and then making a new post to show the min/maxers that actually the Mage is capable of dishing the most damage possible. Obviously when you reach these damage levels nothing can survive for more than maybe even 1 second but I'll give something around 100,000 health to test.