Yes and its stupid annoying, listed as a bug here:
http://tracker.vbulletin.com/browse/VBV-10533
No determined version of when this will come back, its listed as "backlog"
I've found that this feature is actually coded in core/includes/functions_newpost.php
There is a function called: exec_send_notification:
/**
* Sends Thread subscription Notifications
* @param integer The Thread ID
* @param integer The User ID making the Post
* @param integer The Post ID of the new post
*/
function exec_send_notification($threadid, $userid, $postid)
The code of this function clearly does what we want it to; however there is no call to this function anywhere in VB. If someone could tell me where i should call this function we can get a work-around going.