They likely dominated Rome at some point, but founded is quite a strong claim given the marked cultural, linguistical and artistical differences. There's no continuity at all to justify a colony outgrow.
What I had heard was that the people of Rome lived around the hills, and the Etruscans sort of did the work of building a city and government, and the native Romans adopted their culture, grew through conquest of neighboring native tribes, and ultimately overthrew the Etruscans - but not before eliminating the legacy of their former masters.