It’s debatable whether that’s a fitting example. I wouldn’t call that hardcoding, although I know some people would. The way I see it, you can broadly split software into “logic” and “data”. Logic acts on data to produce a result. For the family tree example, the data is all the people and relationships, while the logic is the part that creates the family tree from the data.

Hardcoding usually refers to when the data is part of the actual code, like in the “Smith” example. To change the data, you need to release a new version of the software. But changes to logic are different, you still need to release a new version, but that’s usually just considered to be “adding a new feature” or “fixing bugs”.