Sorta...the pin switches actually provide the ground path, but it is 12v that travels thru the flasher...that's what makes the flasher work. Once the system is armed, there is 12v at the relay thu the horn, then thru the flasher. Once one or more of the pin switches closes, the relay latches closed, and stays that way until either the key switch in the rear panel is turned to disable the system, or the battery goes dead. It's the relay that continues to provide the ground from that point. You can shut the door or the hood, and the alarm will still sound. Once the key switch is turned(alarm OFF), then the relay looses it's 12v, and unlatches.
The circuitry in the flasher allows voltage thru(to ground) until the thermal spring gets hot, and it opens the contact. When it cools, it closes again. It does this pretty quickly on/off, thus causing the horn to beep beep.
The "anti-theft switch in engine compartment" in Bob's 77 diagram is prolly not present in the '68-'72 cars, but it may be...I've never actually looked to see. On the '73 up cars, it is the exact same switch that is used for the "headlight open" warning, and it is installed so that if the key switch in the fender is popped out, or otherwise disturbed(like cramming a screwdriver in it and turning), the alarm will sound.
It's really a fairly simple system...just a lot of wiring involved. Unless it's full of rust/corrosion, the relay rarely ever gives any problems...the flasher is a different story. It fails quite regularly, even if the alarm never sounds.
hth.
______________
Joel Adams
C3VR Lifetime Member #56
My Link
(click for Texas-sized view!) NCRS
"Money can't buy happiness -- but somehow it's more comforting to cry in a CORVETTE than in a Kia"