That doesn't mean the TV isn't still reporting your viewing habits back to them; it's still running Android, still has a network connection.
Hilariously, they allow you to go back to "smart" Google TV with a click of a button, but going to 'basic' mode requires a full reset.
Oh, and they're petulant about you disabling "smart" functions; you lose chromecast, even though there's no technical reason for it. Probably because it's the only actually useful feature people want if they have an external streaming box.