Generally, yes, that's exactly what it means. Driver development is like throwing money into a big bottomless pit for hardware companies like Creative. Once they move on to some new product, they aren't going to waste resources on creating drivers for old ones.
If Creative doesn't have anything, or doesn't release the necessary information for someone to create their own drivers (if so inclined), then you're pretty much stuck.
Does anyone here know where I could get the driver for Creative Webcam Instant VF0040 which is compatible with VISTA? The website of creative labs says product development has been stopped for this product. Does that mean that there is no place online where I could get a driver for this webcam for vista?