It's using the line as part of the boundary definition if you use "pick point" method. If you pick a point ON the boundary, it doesn't really know which side of the boundary you are intending to hatch, and thus falls sort of the necessary information required to form a complete hatch.
If you're going to go to the effort of drawing a closed pline to make the boundary, use the "object" method... it's also MUCH smarter for retaining associativity. I avoid pickPoint whenever possible.
*edit*
..after testing, I see that it does not make the line 'dashed' to indicate that it's being read as part of the boundary... but I've seen cases where it does that.... I thought. I dunno... the aforementioned was my general instinct, but eh. I may be off this time.