If I understand your question, you are right. The neutral wire (which comes off the center tap of the secondary transformer at the pole) is shorted to ground. Or more accurately, forced to stay at ground voltage or zero volts.
If the world was wired without grounding neutrals everything would still work fine...but the neutral in my house would be at a different voltage than it would be in yours or for the guy next door.
A 220/110V transformer provides 100V between each hot leg and neutral but that can be done by providing three wires at -110V, 0V, and 110V or by providing 4,300V, 4,510V, and 4,620V. The difference between the wires is still 110V and equipment would operate properly if you don't mind your plumbing, building framing, electrical boxes all being at 4000V above ground. Hurts to turn on a light while standing outside.
Hope this helps.
