That's right. The untouched memory won't be committed, i.e. put into physical memory or swap. But it will take up address space, which can be a problem -- on Windows Firefox is a 32-bit process and running out of address space tends to happen more often than running out of physical memory, ironically enough.
That reminds me (as I now have windows 8.1 on one of my machines again) - does anyone know if there is a roadmap/plan for official 64bit builds of ff on win64?