There seems to be a whole lot of cell chemistry folklore.
To my knowledge, NiMh cells don't have the memory effect, either. It's the old NiCad cells that could be ruined by partial discharge.
NiMh cells are used in hybrid vehicles, for several reasons:
(1) not looking for range, just enough capacity to handle modest propulsion needs when ICE has been shut down under high manifold vacuum conditions (coasting, idling). An ICE is essentially a giant vacuum pump under such situations, which would consume a lot of fuel if it was kept running. Also the battery pack needs to be large enough to absorb regenerative braking input.
(2) NiMh cells are cheap.
(3) NiMh cells are far less finicky than Lithium cells.
(4) NiMh cells last a very long time.
(5) NiMh cells are far heavier than an equivalent Lithium cell.
I drive a Lexus RX 450h hybrid, which uses a beefy version of the powertrain in the Toyota Prius. Prius taxis can run 300,000 miles on the original NiMh battery pack.
The "Plug-In" hybrid Prius is a different animal. In that car they want range, so they need a far larger battery. So they use Lithium there.