Correct. DotCloud started using LXC in May 2010. Before that it used OpenVZ in 2009 (http://openvz.org), and even before that it used VServer (http://linux-vserver.org) in 2008. Back then the notion of stacking 2 types of virtualization was incredibly weird and remote.
In the 2nd half of 2011 other PaaS players caught on to the wonders of container virtualization - Heroku for example started using it with their Cedar stack in April of last year.