Going back to a post made a long time ago in beginners, I'm pretty sure it did. People were complaining at how slow Blitz was and I seem to recall it was because they weren't stopping animating objects that they were hiding. I know I requested a feature addition to disable the entity so that it no longer animated and was hidden at the same time, as I thought that would make more sense, particularly for beginners. Mark said that it sounded like somethiing that would be worth adding at some stage, so I guess that would count as confirmation that hidden entities are animated unless you stop them.
But as I say, this is a few versions back at least.. so it might have changed.
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