Catholic Scientist writes:
When you interpret the word annihilated to mean pounced, you're no longer reading the headline literally.
Point well taken, but in this case a dictionary definition of precisely the intended meaning exists. Definition 1c of annihilate from Answers.com: To defeat decisively; vanquish.
But your point still holds, just not for this particular example, though you could argue that once you're forced to choose among multiple valid definitions that you're making an interpretation.
--Percy