In the 70's at HP (a very different company than the current HP) we had G-Jobs. A G-Job was working on personal development on HP time using HP parts. The term G-Job was a joke. If a manager asked you what you were working on you told them it was "government work". It was semi-officially approved of.
There was a catch though. If you wanted to sell your development you had to give HP first right of refusal. If HP didn't want it you could do whatever you wanted with it.
The Apple 1 was a G-Job. Wozniak offered it to HP and they refused. So he was able to sell it.
Spoke to a recently ex-Googler about this and you're basically right. They said 20% time still exists de jure but if you want to get all your normal work done, get promoted, etc. you need to use all the time for that.