This is incorrect. OT can indeed be implemented on the client.
The way it works in the Datastore API is that the client sends its changes to the server with an attached "parent revision." If that parent revision is the revision that the server has, then the change goes through (no conflict). If the revision doesn't match, then the change is rejected by the server, and it's up to the client to pull down the latest changes from the server, merge things (via, in the case of lists, OT), and then try again.