You would be correct on both counts, but it is still compatible with the latest version of Better Cities.
Wording needs to be exact here. Open Cities
is compatible with Better Cities, but ONLY when not using conflicting parts from each mod. You can use OC Bruma and BC Bravil, but you cannot use OC Bruma and BC Bruma. If you try to use both in the manner suggested by TheNotSoDarkWarrior, then the result will be as Arthmoor described - all cities will be open but vanilla, with only the BC additions placed outside city walls (such as Bravil Docks) appearing.
If TheNotSoDarkWarrior wants Better Cities open, he needs to use Open Better Cities, which is what TheNotSoDarkWarrior is already doing.