Not exactly. Li-Ion's are not accepting same current due whole charging process. Basically, nominal "C" value of charge (for example, 1C) is only happening during ~half of charging process. Then, battery is "reporting" ~4.2 V, and charger starts to gradually decrease current, keeping battery at no more than 4.2 V (less in case of N900, as it's charging and using power at the same time)
As for Your discovery about fake charger - it explains mysterious 650 mA max. How lame, 50% of declared max current