Im no expert but, the way the burst-edge-color is all the way to the center of the guitar, in the "soft wood" part of the grain, makes me think that it IS stained the dark blue, and sanded back.
In a picture it is hard to see what gets lost by the sand back. I person, I really dont prefer one over the other, they are just differant.
Though I will say in photos, the stain and sand back thing always looks better.