You remember correctly. I even faintly remember that on some flights there were announcements that Y passengers should use the lavatories in the back.

By the way, on flight yesterday on A220, there was a curtain and no red headsets.

And for those that have spent far too many decades flying Air France medium haul: remember how until about 10-15 years ago after landing an FA went to the diviosn between the J and Y cabin and blocked Y pax from disembarking before all J pax had disembarked, to prevent J pax being overrun by a stampede of impatient Y passengers? There are days where I wish they still did that...