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I have been using Perfect Targets for ages, I believe the current version still works (the version I have does, I haven't modded it, I got it from the site...).
If a mob isn't currently targeted by someone, as far as the UI knows, it doesn't exist. I think you can make small exceptions - fake frames for units that you think are still around, but that would involve a lot of overhead (estimating the damage on them, so you can clean them up if they die to DoTs, for example), and I think, mouseover-target frames.
Perfect Targets is great, I couldn't imagine raid leading without it. "Hey, guys, I know it's really cool to hear two mobs die simultaneously, but let's pretend we're pros and assist..."
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