So killing them before they turn into nests still works?
Yes, of course. But sometimes they can do it very fast (not SiegeAI, but other AI tactics in different situations, when player kills/destroys near their nests).
It still sends settler parties out though, right?
Yes. In SeigeAI phase it does, and this phase is much more aggressively now (in Rampant2.0+), because settles a little closer and those biters parties don't change building target place when see resource patch on the way from source to player's base.