No, they do take the bone out, I've de-boned a few thousand of them, it's part of the shoulder blade bone, the rest is left in the rib end of the pork loin (next door to where the butt is cut off). The sweat gland is in the fat on the opposite end and is usually discarded automatically when trimming off the exterior fat, there's a large V of it on that side.
Sometimes when the packer cuts the shoulder from the loin he will leave the majority of the blade on the loin vs. on the butt to maximize profit from the ribend when processed into country style ribs, and that leaves a short boneless butt and those do get tossed in with the bone-ins. Meatcutters in stores will also merchandize the blade part of the butt into either pork steak or country style ribs and sell the back half (which is the fattiest) as a boneless butt at a premium price, which is a ripoff. Years ago they used to tie two together but that is no longer legal, it's called larding (any time you tie two separate non-cohesive pieces of meat together).
Just a FYI.
Pops §§