Sorry to be the bearer of bad news, but you are indeed wrong. ;-)
Appleshare requires HFS and as we all know the 128K can only handle MFS thanks to it's finite amount of RAM. That's why the 128K cannot use the HD20 (technically it can, but the HD20 must be hack formatted MFS, as the native Apple drivers require HFS as well). Additionally, Inside Macintosh goes into great detail about how AppleTalk works on the 128K vs. the 500K. In essence, the 128K loads the AppleTalk driver to print or poll a network for a single operation and the is dumped from RAM as soon as you go to a different operation. Since AppleShare server requires continuous polling to maintain a network connection with a client, the 128K could not participate. Apple could have written a custom driver for it, but didn't.
The only way I have found to network between OSX and a 128K is via MacTerminal softwareand serial transfers. It's slow, but not much more than on AppleShare 1.0. It also has the added benefit of bypassing an intermediary OS 9 Mac.