The documentation is wrong in several ways, but I don't think it really has any bearing on functionality.
First, the pre-Ipswich behavior (which was effectively the same as having Smart-Mute
enabled now)
applied only to TTS-1, not all multi-out VSTs (EDIT: Just double-checked, and it looks like I was mistaken about that part. It
does apply to other multi-out VSTs), and muting an audio output never muted a separate MIDI track. But muting a MIDI track driving a multi-out VST would mute all audio outputs.
The linking of Mute buttons in the two parts of a Simple Instrument track is a separate and unrelated function, as Smart-Mute is only relevant when you're using more than one output, and a Simple Instrument track by definition uses only one audio output.
I guess the ultimate question is: Other than the documentation being wrong/confusing, is the current functionality causing you any problem?