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Yes, they were using bones of dead people to construct ritual objects. You do realize that actually killing someone for that purpose would be considered an insanely stupid act causing a rebirth in hell? And how on Earth this custom can explain the Chinese invasion and the atrocities committed until this day?

You know what life is in Tibet for Tibetans? The horrors are so great that once a while they prefer to publicly kill themselves, suffering a terrible death rather than going on like this. That's the sad reality of living under the Chinese rule. There were many things wrong in ancient Tibet, such as feudal fights, the abuse of power by the central government and so on, but nothing of this justifies the invasion and the current treatment of Tibetans by the Chinese.