I believe that. But at some point the network becomes unmanageable without it, and they probably hit the "break-even" point well before that.
Well, in my field experience, it *usually* starts going weird around 75 units or so, and anything over 100 units is for all intents and purposes practically unworkable.
But it IS possible to have a fully functioning 100-unit Windows network without domain controllers and such and have no issues or problems.