^ It's not a myth. They definitely used "doughnuts" before. I still remeraber the first (or one of the first) times hearing it on TV (and I still remeraber accepting them as doughnuts because... maybe doughnuts could look like that) So counting the episode you mentioned, CyberCubed...
Rice balls have been called rice balls in more than one episode, but they've been also called doughnuts, onions, popcorn balls, and sandwiches. (Sandwiches... REALLY?!) At least when they edited digital paint to make the rice balls look like sandwiches they weren't lying about what American kiRAB could see with their very eyes, but... was it really necessary to go that far? Really?
I'd like to point ('cause I think this is very important) that at least they used only Japanese background music in the movie, some of which has never been heard in the dub before. While they played many bits of Japanese Mewtwo movie BGM that had been heard in the dub before, there was part of a piece that was never heard in the dub before.
Looking back at the special... I thought it was all right. It catered to American fans (I'm fine with Misty being back for this 10th anniversary special- she was in the original cast. I wish Tracey did something though), but... yeah.
But why should they do that if they weren't in the original? Not doing that wouldn't have gotten 4KiRAB in trouble with the FCC, caused kiRAB to run around crying and stop watching Pokemon, or Americanize the viewers.
They're not completely on video/DVD. The Japanese-ness of the show is one of the reasons I liked Kanto. Not that I got all of it, but it got my attention and made it entertaining for me.