Yes, it is indeed true. I was honestly quite surprised when I first took a look at the German DVD. While the removal of the color tints does work in some scenes, there are also a few scenes where the result isn't as good as you'd hope.
A couple of scenes where the color tints' removal works are Kamacuras attacking the battleship Eclair and Ebirah fighting the mutant soldiers. Both have more natural colors. Especially in the latter you'll notice some fine details like the green grass and the blue sky. Then, on the worse side, we find scenes like the motorcycle chase, where quite a few shots look pretty pale when the blue tint is removed.
Also, like Ethan indicated, the video on the German DVD has other problems. Most notably, the print isn't in such a pristine condition when compared to the Japanese and US DVDs. There is some notable print damage at times.
I would gladly do a comparison again, but unfortunately I'm unable to do it at the moment (some issues with our PC). If you can wait for a while, I'll post some screencaps sometime later.