Quite true, but not all items:

Quote from Guildwiki (bold for emphasis): As of the April 19th, 2007 update, with the introduction of the hard mode, Money making from farming was decreased in parties with less than the maximum party size, as loot is now scaled according to the amount of players in a party. When farming solo or having party members, you get less items than you normally would, and that amount is now comparable to that of full group farming. Shortly after the release of the hard mode, loot scaling has been slightly adjusted by causing tomes, scrolls, dye, rare materials, Domain of Anguish gemstones, gold level rarity items, unique items, and Special Event items to be excluded from the new system.