Not exactly. I can spin the rear wheel (hub motor) with the system turned off for 2 1/2 revolutions at least.
There is noticeable drag but it is feasible to ride around without power; I tried it just for kicks a month ago. It sort of feels like your towing an empty trailer in back. You know, those 2 wheeled child trailers people tow behind their bikes? An unpowered Bionx feels pretty much the same way as far as drag is concerned.