Earlier quoted context omitted.
I know this article says Unix specifically, but on Linux (Ubuntu) I just tried typing `ls^D` in bash and got a terminal beep. I tried in zsh and got an autocomplete as if I'd hit tab. In ksh and fish nothing happened. I'm curious as to why there are different behaviors here?
As the article explained at the end, shells put the terminal into uninterpreted mode, so ^D doesn't do anything special there. You have to be using a program (such as cat) that doesn't do this to see ^D's behavior.
But indeed, it's in raw mode so the kernel doesn't do anything special and just emits the 0x04 byte down the descriptor.