Yes that correct, although the install routines clearly must be slightly different.
There is an underlying language-neutral OS, and then the Language Pack is installed on top of that. This can be seen clearly by the diagrams in the following Microsoft developer's link:
http://msdn.microsoft.com/en-us/goglobal/ee461121
This link also has a very nice description of the install differences between English and Chinese:
"the only difference is only in a different language pack installation
files for English version of Windows 7, the first installation is
x86_Microsoft-Windows-Foundation-Package_6.1.7600. 16385 base package,
then install x86_Microsoft-Windows-Client-LanguagePack-Package_
6.1.7600.16385_en-US language pack
For the Chinese version of
Windows 7, the first installation is
x86_Microsoft-Windows-Foundation-Package_6.1.7600. 16385 base package,
then install x86_Microsoft-Windows-Client-LanguagePack-Package_
6.1.7600.16385_zh-CN language pack"
http://www.wduu.info/archives/6754.html
http://en.wikipedia.org/wiki/Multilingual_User_Interface