No, this is incorrect. Listen to this:
View: https://www.youtube.com/watch?v=qQn3bsPNTyI&t=127s
"These software and hardware innovations enable DLSS 4 on RTX 50-series GPUs to generate up to three additional frames
between traditionally rendered frames."
I have seen and heard nothing that implies multi frame gen will use frame projection. But the latency penalty is the same as with regular framegen. You render two frames, and generate stuff in between... now with three frames instead of one.
This is also why you'll be able to use the Nvidia App to override regular framegen to multi-framegen on RTX 50-series. They're doing the same basic work, just with 1, 2, or 3 intermediate frames now. Smoke and mirrors!
UPDATE: Nope, I was wrong. DLSS 4 multi frame generation is apparently using frame projection technology!