Basically the answer is yes our views of that period are exaggerated. Whilst in the written text it is true that even mild curse words were not printed. For example Bastard was printed as B-D and damn was printed as D-N.
However these words still continued to be used. The best source for the use of swear words is actually in the trials of people since the words were recorded without censorship.
For example in an obscenity trial that took place in the early victorian period a woman is recorded as following a group of other women and calling them bloody whores who should go fuck themselves.
Also here is an example of the usage in the Victorian age. This comes from a diary written by an anonymous Victorian gentleman in 1882
We fucked that glorious word expresses it all. Slowly till urged by spermatic wants, the inner sovereignty or force in my balls, hurrying to ejaculate itself, quicker and quicker went my thrusts her buttock responded her cunt gripped....
So the words were used and people knew them. They were not used in polite company. But even other words were printed for example the Pearl was printed in 1880 and contained stories that included oral sex and all other sorts of erotica. For example here is a poem from that first issue of The Pearl
The Origin of the Species
When Adam and Eve were first put into Eden, They never once thought of that pleasant thing—breeding Though they had not a rag to cover their front, Adam sported his prick, and Eve sported her cunt. Derry down.
Adam's prick was so thick and so long—such a teaser; Eve's cunt was so hairy and fat—such a breezer; Adam's thing was just formed any maiden to please, And his bollocks hung down very near to his knees. Derry down.
Eve played with his balls, and thought it no harm: He fingered her quim and ne'er felt alarm; He tickled her bubbies, she rubbed up his yard, And yet for a fuck, why they felt no regard. Derry down.
But when Mrs. Eve did taste of the fruit, It was then that her eyes first beheld Adam's root; Then he ate an apple, and after he had done't, Why then he first found out the value of cunt. Derry down.
Then they say they made fig leaves, that's fiddle-de-dee. He wanted a quim, and quite ready was she; They gazed on their privates with mutual delight, And she soon found a hole to put jock out of sight! Derry down.
Then Adam soon laid Mrs. Eve on the grass, He pop't in his prick, she heaved up her arse; He wriggled, she wiggled, they both stuck to one tether And she tickled his balls, till they both came together! Derry down.
Since then, all her children are filled with desire, And the women a stiff-standing prick all require! And no son of Adam will e'er take affront, For where is the man that can live without cunt. Derry down.
Source
Vulgar Tongues: An Alternative History of English Slang
Holy Shit A History of Swearing