You're right. The comments in /etc/default/ntpdate are confusing.
** Summary changed:
- ntpdate-debian not syncing time
+ Confusing comments in /etc/default/ntpdate
** Changed in: ntp (Ubuntu)
Importance: Low => Wishlist
** Changed in: ntp (Ubuntu)
Status: Incomplete => Triaged
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Confusing comments in /etc/default/ntpdate
https://bugs.launchpad.net/bugs/537451
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