Not true at all. Ever see JD do his stuff, win contests etc?
(Most any member of the YYJ team for that matter)
Most any YYJ model - clean the bearing, open the gap, good to go. Yes, they’ve moved on a bit, but when o-rings were the primary response, they all used them.
O rings that are worn down can play pretty darn good. Sadly, they turn string black very quickly, making them annoying to play with.
As Yonut said, most yoyos that use the o ring are outdated, though some still are excellent yoyos (Original speeder, anyone?) Further, all of the yoyos that use o rings pretty much played better with silicone.