I'm surprised that this misses the distinction made by signalsmith above: the way Shakespeare uses "they" to refer to someone is unremarkable, but what strikes many present-day speakers as an error (even if they fail to explain why) is the use of it to apply to a particular person, especially a named person.
1: http://itre.cis.upenn.edu/~myl/languagelog/archives/002748.h...