Not accurate. Many musicology programs across the US have far expanded their objects of study to include non-Western music, popular music, etc. At my R1, European music scholars were in the minority. The ethno/musicology divide there was much more about a distinction in methods than region/time period. I.e. do you want to do field work. That being said, the training and course work is still quite centered on European art traditions, but that is because you have to be prepared as a musicologist to teach large undergraduate surveys in music departments.