No, it is true. After the recent update you could use a combination of queries and offsets to retrieve more than 1000 results. To get 1001 results or more you need multiple calls.
entities = data.MyModel.all().fetch(1010)
print len(entities) # Prints 1010
Then I thought that perhaps you meant the limitation still exists in the low-level datastore API — and it's worked around by the Model interface making multiple calls to the low-level API — but that's not true either:
from google.appengine.api import datastore
entities = datastore.Query("MyModel").Get(1010)
print len(entities) # Still prints 1010
The reason I'm sure is that I just tried it:
Then I thought that perhaps you meant the limitation still exists in the low-level datastore API — and it's worked around by the Model interface making multiple calls to the low-level API — but that's not true either: So: what do you mean?