7

The Salesforce documentationhas below line

Custom settings are a type of custom object. Each custom setting counts against the total number of custom objects available for your organization.

I highly suspect this is not true anymore.

Is it still valid?

11

This is still valid, have a look at the System overview area of your org and you will see there is an indicator bar (shown in screenshot) that details the information you are talking about. I can verify this org has 14 custom objects and 2 custom settings (it is a throwaway dev org of mine I use for playing around in). 16/400 is also exactly 4%.

enter image description here

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  • a picture speaks a thousand (or less) words, nice! – Andrew Fawcett Feb 12 '14 at 14:25

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