xmlrpc.php is not the initial entry point. It’s simply the attack vector once the breach has already occurred.
This is not unusual, xmlrpc.php is generally used as the attack vector in all WordPress attacks, because it’s specifically designed to allow external posting and such, so after they have created a way in, everything they send after that will be through that file. It’s easy to do, basically.
The exploit I saw basically works like this:
1. Hacker registers a new user.
2. Using that, it exploits the privilege escalation bug (fixed in 2.8.3) to change the permalink to have that malicious string in it.
3. That string allows them to execute arbitrary PHP code through a specially crafted HTTP request. This is used to create an administrator user.
4. Files are uploaded using this admin user, and then executed using the PHP exploit.
Once that happens, they’re in. Actually, you got pwned at stage 2, because when they can execute arbitrary PHP code, it’s all over, really.
This is a several stage hack. Each stage appears to be executed at different times. Like the hacker was running each stage on a list of sites, eliminating the sites that failed to answer correctly each time. Thus it’s a mass attack.
Since this is an automated attack, there may be other, older, exploits being used as well but having the same end result. This is fairly common with hacker toolkits.