I think it works less the older the cat gets, but never totally goes away. Older cats might get a bit upset about it, but not too bad--makes it easy to give them a pill if you need to.
That's momma carry you mode for a kitten--not a good idea to struggle when her fangs are around your neck. lol
Will water override that instinct though? Interesting question...
All that said, IMO, I don't think cats really need baths like a dog does. They give themselves baths constantly--unless it is a flea bath or something like that. The soap is pretty rough on them from what I can tell. Their skin gets all dry and flaky. I don't think I have ever given my cat a bath and she is always clean and fluffy without any kind of smells.