Well it is mostly true. Parallels is emulating a 2d only video card with a user adjustable 4-32MB video memory. But since its 2d only, the video memory is used exclusively for the size of desktop. 32MB makes no sense if you're working on a MacBook or MBP. In most cases 8-16MB is all that's needed.
On a 3D video card the extra memory is used for a backing for textures and video processing. Since Parallels does not emulate a 3d video card...