Your whole argument is. Heat pumps need a secondary heat source because at the temperatures around 0C they accumulate ice on the heat exchanger outside. To melt the ice they reverse the energy flow so they cool the house and heat that heat exchanger. You asserted that it's just FUD and they can "redirect some heat" instead. This implies they don't cool inside and instead redirect heat from elsewhere (second outside heat exchanger perhaps?).

But it appears there is no second heat exchanger outside and the modern heat pumps work just like heat pumps from couple years ago.

As for keeping the functionality - it's a philosophical question. For me personally, if I turned on the heater because it's cold inside and it started blasting cold air, I'd call the repair people immediately. While it still works in the sense that it makes noise and consumes energy, it stopped performing its function of heating so I'd consider it lost the functionality I am interested in the most.