That's pretty much what happened, as far as I remember the "war" broke out on the eve of the OD at Euros, I don't think D/S had time for anything else but minor changes between then and Olys.
I think it was very clear from the start though that they did not mean to mock or make fun of anyone intentionally, and this was clear to the aboriginal leaders as well. Last I heard any quotes from those leaders they seemed to be more forgiving, they invited D/S to visit Australia and get to know their culture and Bev Manton (one of the leaders) also reacted positively about the costume change.
I very much hope they were able to make amends, per media reports their meeting with First Nations went very well (which is not the same as meeting the Australian Aborigines, but hopefully there is some communication between them, since First Nations originally offered to be intermediaries). I'm just going to quote part of an article about that, because I like what they said about the blankets (and sorry if this was mentioned already):
Hmmmm, so maybe it's the blankets that keep bad marks away from them
Switching to a completely different topic: someone who claimed to be Moldovan commented on B/A's OD on youtube that the music was authentic . I know nothing about Moldovan music, so I have no idea if that's true or not, but I thought I'd share that anyway.