Indirectly, yes people feel that way if they still believe in the church and were excommunicated due to sin. However, excommunication is not permanent because a person can repent and return to the church. However, it is nonsense to think that if you don't repent that excommunication means any else but going to hell. You might not hear it or people in the church might not use these exact words but they will call you an apostate. There is nothing worse for a believing mormon than being excommunicated. There is also the public shame of it when they announce the decision in priesthood meeting. So most of the males know and eventually the majority of the ward members find out through gossip.
My father was excommunicated and I felt the shame of it with all the gossiping about it. As I grew up and realized that I never believed in the church, I decided to leave the church, I was not excommunicated but left on my own. People will say you must of been sinning to leave but I hadn't at the time I left the church but I've received a letter from church headquarters that there will be grave eternal consequences if I don't reconsider my decision. I interpreted that as I am going to hell. I am sure many of my friends secretly think that and some have publicly said it. I have lost a few friends but I don't think I am going to hell. I don't believe in hell.
I've never regretted my decision and wish I had made it earlier in life. I have a lot of good memories in the church (socially) and I believe there are many good kind Mormons in the church. I've never tried to recruit anyone out of the church and would never do so because it took me many years to remove myself because it was part of my social circle. I will respectfully discuss my doctrinal and personal issues I have with the LDS church if asked or if an LDS person feels they need to reconvert me. My only hope is that the church addresses some of these social changes with the compassion of Christ instead of the judgmental minds of men. So far they don't have such a good track record. However, I believe churches can and should repent (apologize) just like people.
Wow. . LOVE that last sentence.