I can confirm that this mod NEVER did this.. (and I have used/tested versions going all the way back to Kuroi's original version of this mod)
There have been posted "fixes" in both of the SBA support threads which show how to modify SBA so that attributes which are out of stock will not appear on the product pages. However there is a HUGE CAVEAT with using this code. It only works for SINGLE attribute product variants. Product variants which involve multiple attributes do NOT work with this posted "fix".
The reason why this "fix" has NEVER been included in any SBA release is because of the fact that it will NOT work on variants which contain multiple attributes (ie: size + color)
Hope that clears this up a little..

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