Huh, I never read too much into it but it definitely sounds like that might be the case.

This Billboard article from the time of the 2005 legal settlement mentions:

"The settlement ends a legal dispute that some of Parks’ own relatives had criticized, saying she wouldn’t have minded the use of her name in the song “Rosa Parks” had she not been mentally impaired. "

…

“After that lawsuit was filed, some of Parks’ relatives began questioning her well-being and the actions of her caretaker and the lawyers who filed the suit, and alleged she is probably unaware of the lawsuits.”

So perhaps while she did technically live long enough to sue OutKast, she was suffering from dementia at the time and it’s possible that she was unaware of the actions taken in her name.

The more you know!