Yes that’s correct, the oscillators in PAL systems were designed for PAL video timings, so they may not work to spec when forced to do NTSC video timings. A mod chip on its own cannot correct this.
As for other systems, it depends, PAL PS2 will run NTSC PS2 games at the same refresh, but has the same timing issue on NTSC PS1 games. SNES has a similar (though not quite as servere) issue too, as does the Saturn and Megadrive.
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