I hope it true, but I'm not getting overly excited about this. I recently retired as a Commander from the reserves (USNA 81) and to my recollection officers don't receive OTHs. From the MILPers manual, the commission of an officer can be terminated by dismissal, revocation of commission, acceptance of resignation, dropping from rolls, termination of commission, and separation for cause. Perhaps it was different in the early 70s.
http://buperscd.technology.navy.mil/bup_updt/upd_CD/BUPERS/MILPERS/Milpers.pdfAs a said in my earlier post (#487), officers do not receive discharges like enlisted personnel, i.e, other than honorable, bad conduct, dishonorable, etc. The procedures of involuntary separation for US Naval officers can be found in SECNAVINST 1920.6B.
http://neds.daps.dla.mil/Directives/1920/three.pdf