The hype (with original grammar!)

 The facts

The effects of magnetic fields on water was discovered in the early 1900's by Danish Physicist Hendrick Antoon Lorenz.  He received the Nobel Prize in 1902 for his discovery of the effects of magnetic fields on water. 

The 1902 Nobel Prize in Physics was awarded jointly to Lorentz (who was Dutch) and Zeeman for the discovery of the effects of magnetic fields on atomic emission spectra. (If Lorentz studied water, it was probably its magnetic susceptibility, which has nothing to do with magnetic water treatment.)

Water is a polar molecule, something like a little magnet.

 Water is indeed polar but this has nothing at all to do with magnetism. The polarity is due to the higher nuclear charge of oxygen, which displaces the shared bonding electrons towards the oxygen. This leaves the oxygen with a partial negative charge and the hydrogen with a partial positive charge. Water has no paramagnetic properties.

In normal water, the positively charged hydrogen atoms are attached to neighboring negatively charged oxygen.  In fact, each oxygen is in close contact with 9 hydrogen's. 

This statement confuses the bonding within H₂O and the much weaker intramolecular hydrogen bonding that operates between molecules. Within H₂O, each oxygen is permanently bonded to two hydrogen atoms. Connections between the hydrogen of one molecule and the oxygen of another are so weak that they are continually being broken by thermal motions and re-formed. Only in ice can one attribute a permanent structure to the water that extends beyond a single molecule.

This causes water to have a high surface tension so it sticks together.

Water does have a high surface tension, but this is not what causes water to "stick together"; both effects have their origin in the intermolecular hydrogen bonding (described above.) Surface tension is the work required to expand the area of the surface. The lower the surface tension, the more readily will a liquid penetrate narrow spaces as in a fabric.

Lorenz discovered that under the effects of a magnetic field, the polar molecules align and separate.  Thus making the water softer.

 The "softness" of water refers to the absence of dissolved salts, not to low surface tension. I am unaware of any evidence that the surface tension of water is affected by a magnetic field. Anyone with access to a capillary tube and a magnet can test this for themselves, since capillary rise is proportional to surface tension.

Fifty years after Lorenz's discovery, scientists expounded on similar ideas, learning to manipulate water's structure with chemical combinations, thus the invention of laundry soap.

 Soaps and detergents operate in two ways, namely by reducing the surface tension but also by forming tiny globules around hydrophobic "dirt" particles and effectively rendering them soluble-- a process known as emulsification. Soaps have been known since ancient times.

Using magnetic technology, The ... Laundry Ball changes the molecular structure of water with ionization instead of harsh chemicals. 

Ionization? Where does this come in? Magnetic fields do not induce ion formation and they do not change molecular structures.

THE ELECTRONS SPEND MORE TIME AROUND THE OXYGEN AND LESS TIME AROUND THE HYDROGEN MAKING IT POSITIVE.  WITH THE MAGNETS, THE PLUS AND MINUS COMBINE CAUSING THE WATER MOLECULES TO STICK TOGETHER. 

The first sentence is approximately true. The second is not. Moreover, don't we want the water molecules to NOT stick together?

The permanent magnets suspended in the ... Laundry Ball create a powerful magnetic field that aligns the water molecules, (hydrogen in one direction, oxygen in the other.)

Water molecules actually repel magnetic fields, and certainly cannot be aligned by them. Even if water were paramagnetic, thermal motions in the liquid would disrupt any alignment once the magnet moves away.

This alignment changes what is called the "surface tension" of the water, causing it to be extremely reduced.  The "drops" of water become so small and minute, they can easily penetrate into the fabric.

The low surface tension that promotes penetration of water into the fabric is just the opposite of the conditions required to stabilize "small drops". Smaller drops inhibit wetting of a surface!

When this happens, the water is considered "activated".  Along with this process, the minerals and salts suspended in the water become activated into an "ionic"  form, (charged particles), aiding in the cleaning process.

This kind of "activation" is not yet known to Chemistry! Further, the minerals are not "suspended", but are dissolved and already exist as ions. And the major ions of Ca and Mg tend to reduce the effectiveness of detergents.

During the 1970's the observation of effects of magnetic fields on water began in the U.S.  In 1984 , the institute of Electronic Engineers(IEE) recognized the new developments.  Early in 1984, Dr. Klaus J Kronenberg spoke at a conference on magnetism in St. Paul, Minnesota.

It's a bit much to state that his work was "recognized"; IEEE simply published the conference proceedings. Kronenberg's presentation can be found in IEEE Transactions on Magnetics, Vol MAG-21 (5) Sept 1985. The paper offers no evidence for magnetic water softening.

 The physical process used to cause this change in crystalline structure is provided by the use of magnetic induction fields, which when exposed to moving water, interacts with the water's electric dipole moment and applies a torque to the water molecule. The subsequent down stream effect of these coherently-oriented water molecules provides the electric potential which supplies the energy necessary to form the more complex crystalline form of calcium carbonate, called aragonite

 The "torque" a magnet could apply to a water molecule would be far too minute to compete with ordinary thermal motions, which would in any case disrupt any temporary orientation even if it were to occur. There is no known way of utilizing electric potentials to cause the carbonate to precipitate as aragonite.