Morning seal, my experience suggests the latter of your two posts is the correct one. I have a 27" iMac with a mini display port (a 2-year old one, not the newer one with thunderbolt); and a brand new Mac book air with thunderbolt. I connected the two with a Belkin male-male mini display port to mini display port cable, and it works fine - press command f2, and the iMac acts as display for the MBA.
The irony here is that the folks at the apple store in Paris assured me that this would NOT work, and that I needed to buy a €999 thunderbolt display to connect to my MBA. I thought I'd try anyway, since I had the cable to connect a MacBook pro to the iMac anyway... Glad I did.
Bottom line: yes, despite all the confusion, the new MacBook air will connect to the minidisplay port of an older iMac 27"; and the cable it needs to do that is the older minidisplay port cable, not the thunderbolt one.