Yes - I agree with you, the ptich circle is a crucial measurement - but, if you open it out into a straight rack. if the pitch is 16 teeth per inch, then the distance between the tips of 16 teeth is 1 inch irrespective of where the pitch circle is (usually about 1/2 way down the tooth). This is because the tooth is roughly trianglar and therefore the centre point of the tooth will be in the same position for the whole of its depth.
The distance between the tip of the teeth when it is in a circle or pinion will be in excess of this, but as you "straighten it out" into a rack, all what were the spokes of the wheel become vertical and parallel, and therefore all the same distance apart.
In the diagram you have posted this shows the distance between the teeth is regular - and is equal to the pitch circle of your cog. What is crucial in this debate is - what is the distance between the 16 teeth (on the rack)