From what I recall yes he was strictly acoustic for those two years. I had been a fan of his since 1998, but was too young to go to shows, then he played a a couple times at 19+ venues in my area for a couple years and so I still couldn't go, after high school I briefly lost track of him, this was during the 2005-2007 period. I missed the release of Hospital Music, but stumbled across it in a store about 6 months later and bought it, it rekindled my love of his music and I looked into seeing if he was touring at that time. I had just missed his show in Victoria in fall 2007, so I kept up with his touring news pretty vigorously after that. he did an acoustic tour of the states in the spring of 2008 and then did a full band electric tour, which was his first since 2005, in May/June of 2008. That was the tour Massey was recorded, I saw his Victoria and Nanaimo show. The Victoria show was at the Curling Club and he opened with Giant and literally five seconds in two guys got in a real ugly fist fight. I remember thinking "man Matt Good crowds are rowdy" But I've never seen that kind of overt violence at another of his shows since. I went to the next show and tour closer in Nanaimo, which was his 37th birthday, the crowd sang him happy birthday, he told us to keep our day jobs. I remember during the opener, the crew were running across the stage hazing the band, they were either in underwear or nude, but with paper or other object covering them, I can't remember, but it was quite hilarious.
When he came back after that hiatus, his band was completely different than it had been before. This was Stu and Blake's first tour. Milos Angelov was on bass and he played bass with Matt for several years after up through the Arrows Tour. There was also a keyboard player on this tour, named Peter Nunn who I think only played with Matt on this tour.
But ya, as far as I remember there weren't any electric shows in 2006 and 2007. Actually, it's funny because at the time I remember hearing fans who were saying "I'm so glad he's back to doing band shows." But for me having just missed the two years of acoustic shows for me it felt the other way, by 2012 I had seen about 20 full band shows and I was really hoping to get to experience an acoustic show. My first one ended up being the secret show he did in Vancouver that year, and it's still my favourite concert of his I've ever seen!