It's not a rumor. Yes, TLS doesn't work, but that's not a big deal, because you can still allow unsecure connections.
The issue is that you see 3 people are online, you can also receive their messages, but they can't see anything you write[1]. This behavior is worse than outright blocking, because it creates confusion at first seems like everything works and why people are complaining, then makes you suspicious that perhaps Jabber is broken, and in order to talk to your friends you might start using gmail.com.
[1] Initially this happened to anyone who converted to hangouts. I don't think there's option anymore to opt out from hangouts and get back to GTalk.