Yes, it's true. You go to the Jedi academy and through quests learn about the Jedi, you go to the Sith academy and learn about the Sith, and have a chance to either follow their philosophy or reject it by your actions. You're not just told Czerka is evil, you see for yourself how evil they are. If you're told Taris consists of the rich upper city and the wretched lower city, you go there and see for yourself. You learn all kinds of things about the universe, and very little through exposition. If it was ME, all that stuff would just be written down in the Codex for you to read, instead of experience for yourself. That's the difference between a great game and a mediocre one, I'll never understand why so many people can't see that.