It still shows where they are, but only if they are within line of sight far away. This means they are less predictable, and will surprise you in a mountainous region where line of sight is blocked. If you ever get a hint of red on the radar and suspect they might be after you, it forces you to get to high ground and check. I love it.
I'm not 100% sure if it works, but there already is a mod for hiding enemy dots from the minimap radar: https://www.nexusmods.com/reddeadredemption2/mods/892
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https://www.nexusmods.com/reddeadredemption2/mods/892