Oh yeah. I think that everyone in our mission knew some form of that legend. The old Toulouse mission had quite the reputation.
Coincidentally, I had a district leader in Valence who was sweet on a sister missionary. The mission president ended up sending her out of the mission to serve in Toulouse (If I recall correctly, it was then the Bordeaux mission). Well, one night soon after, my district leader disappeared, and went on a trip to visit her. Needless to say, he was sent home. It was such a big deal at the time. Anyway, I saw them once after the mission and they were happily married.
Yeah, I heard we had quite a reputation - I was there in 79, by the way. But the reality was that the great "sins" Toulouse missionaries engaged in were:
1 - skiing on their P day outside their district
2 - on transfers, stopping by cities where they used to serve to visit old comps
For those sins, several missionaries were sent home at the end of their mission without temple recommends. And Elder Hale treated us like we were coked up punk rockers.
We had several missionaries get married, too. Obviously, some missionaries had other things on their minds... who could blame us?