Does that mean you could technically both agree to lie to everyone using a self created event using kind 9735 without ever sending sats? Is that what I'm reading?

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yes. In fact, you can make up a pubkey, have it create a "zap request" for an invoice for 22 million bitcoin, have your nostr "account" give it one (I know, nostr technically doesn't have accounts, but you know what I mean), then have it request a zap receipt, have your nostr "account" give it that too, and voila: nostr apps will duly report that your nostr account received a payment of 22 million bitcoin, and some will even display your zap receipt as "proof" -- even though it's impossible to receive 22 million bitcoin