As I understand it, yes, the Killing Joke is still in cannon, but rather than being crippled for life, Barbara was only crippled for a few years. I still don't like it. I thought she was actually a stronger character as Oracle then as Batgirl. She was THE source that almost every hero turned to for information. She was the-go to investigator for the JLA and ... grrr.... the more I think about it, the more it pisses me off. Also, she still kicked ten tons of ass, even in a wheelchair. I've got to go back and read the older Birds of Prey books.
Also, for the record, Batwoman is also a lesbian and is generally not written for titillation. I'm actually thinking about checking out her book when some trades come out.
Matter of fact, Isn't she Montoya's ex-girlfriend?