Yep.... both Korg AND Yamaha still cut off sounds to bring the new one in. Except the Kronos. And even that can cut off sounds if it has to load a new synthesis engine in.
Roland tend to take the opposite approach. Rather than cut the sound off to prevent glitches that MIGHT happen (but might not), they let the sound continue, and if a glitch happens from having to load a new effects insert, they let it happen. As sound glitches can easily be prevented by making sure that both sounds either don't use insert effects (it doesn't affect send effects) or they use the same one, you rarely ever hear a thing.
IMO, the better of the two systems.
Dennis, the problem I heard was with anything with a release tail... On Roland's the overlap is smooth and undetectable. On Korg's, not so. One of my favorite tricks is to play pads, and change the pad sound almost every note, so you get this swirling cloud of different sounds all blending together. You simply can't do this on a PA... But the Kronos has it down!
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An arranger is just a tool. What matters is what you build with it..!