(edit: I have gone ahead and verified your statements regarding getlastlogxbyname now being based on ASL. Using that knowledge, and based on st3fan's comments about the output of dtrace, I then used dtruss to verify my own assertion regarding the order of events. The result: .hushlogin in fact only affects the output of "last login"; it does not keep login from getting that information in the first place with ASL. To keep it from doing so you must pass -q, something Terminal does not do.)
The correct way to bypass the ASL query is to set Terminal to open shells with /bin/bash (or your shell of choice) instead of the default login shell. Terminal will still use /usr/bin/login to launch the shell, but it passes the -q switch to prevent the ASL query.
When I dug into the source code a couple of months ago, I inadvertently made both changes (Terminal settings and .hushlogin). Clearly it's the Terminal settings that solved the problem and not .hushlogin. Thanks for clearing it up.