This is kind of, sort of half right...
I've been using an early serial number SM-400 for over a decade now and have used it to drive 4 ohm loads on many occasions, including as a backline for all day rock festivals to drive a fridge. I've seen old SM-400 as reggae backlines in Jamaica driving all sorts of cabs. It was/is a solid head that serves those who like its tone well.
However, it is true that there are issues with the cooling method Rabe chose for the early SWR heads - strictly convection, no forced cooling - but those were usually the result of people sticking them in racks with insufficient airflow. It gets hot as hell, sometimes uncomfortably so, especially at 4 ohms bridged. But that's what it was designed to do.
The 400s added a fan to allow the output to be bumped to 250 per side at 2 ohm stereo, 500 watts at 4 ohm bridged, among other features which had been available as factory mods. It could be considered a transitional/separate model as it was renamed the SM-500 relatively quickly.