Nope. I just reran the query on a machine that still has ArcGIS Desktop 10.0 SP5 and ArcSDE 10.0 SP5. Ran the following query using two different databases (one spatial (WATER - SDE), one not (GIS_REPOSITORY_TABLES - non-spatial) and was able to create the spatial view. In addition, I can also create a spatial view using 10.1 SDE SP1 command line back to a 10.0 SDE database. I cannot use 10.0 SDE SP5 command line (or toolboxes) back to a 10.1 SDE database.
O:\>sdetable -o create_view -T PLN_DEVELOP_FEE_AREAS_VIEW_2 -t wtr.PLN_DEVELOP_F
EE_AREAS,GIS_Repository_Tables.dbo.FFCIMPORT -c wtr.PLN_DEVELOP_FEE_AREAS.Shape,
wtr.PLN_DEVELOP_FEE_AREAS.IDNumber,GIS_Repository_Tables.dbo.FFCIMPORT.IDNum,GIS
_Repository_Tables.dbo.FFCIMPORT.ProjectNum,wtr.PLN_DEVELOP_FEE_AREAS.ObjectID -
w "wtr.PLN_DEVELOP_FEE_AREAS.IDNumber=GIS_Repository_Tables.dbo.FFCImport.IDNum"
-i sde:sqlserver:GS005 -s GS005 -D WATER
ArcSDE 10.0 for SQL Server Build 685 Fri May 14 12:05:43 2010
Attribute Administration Utility
-----------------------------------------------------
Successfully created view PLN_DEVELOP_FEE_AREAS_VIEW_2.