Yes, IsActivated is safe. However you're removing your ability to to revoke and remotely deactivate product keys. I'd recommend using IsGenuineEx with the TA_SKIP_OFFLINE flag. This way customers that have activated offline will never have to re-verify with the activation servers, but customers that activated online only check with the activation servers every X days (we recommend every 90 days).
In other words, IsGenuineEx() acts like IsActivated() for all offline activations (presuming you use TA_SKIP_OFFLINE), and it also acts like IsActivated() for online activations for most of the time (all the time except for 1 call every X days).
IsActivated() never requires the internet and IsGenuineEx() only requires the internet for 1 time every X days.