Yes they did, they removed the menu button which is what Google has called for. This whole side conversation of onscreen vs. other types of buttons is irrelevant to this discussion. Google said "Get rid of the f'ing menu button, it's screwing with the direction we want to take Android." This is what HTC has done, now app developers need to get on board as well. This is just a transition period and if Google has any control over the Android world all the other hardware makers will follow suit as well.
None of this is relevant, this isn't a conversation about whether or not HTC is a good Android citizen. It's a more fine grained conversation that:
1) Google asked hardware manufactures to remove the menu button.
2) They've also asked app developers to stop relying on a menu button.
3) Some hardware manufacturers are complying.
4) Developers need to update their apps or people will start looking for alternatives.