Yes, they were still using felt on at least some of the '80s racks. The chemical will damage felt if it is immersed for too long; if the rack is staying together I dial back the heat and the immersion period a bit.
Unfortunately, with some of the bikes I work on, the owners are on very tight budgets to begin with and don't want to pay for the extra time needed for full disassembly, especially if the bike is a rat or near rat to begin with. I'm sure you know that with some of these bikes it's like working a triage protocol in an emergency room; you do what you can...