They do, but it's also not uncommon for Catholics to violate any other precept, e.g. divorce. It's a very lax culture, in this age, in the developed world.
I have plenty of Catholic friends who decided not to baptize their children, grandparents weren't happy but it's rarely a reason to truncate relationships.
I don't go to Mass, but there was no question we were going to baptize the kids. In part, that's because the Catholic youth sacraments happen on a pretty well-defined schedule and it's weird (socially) to get them done off that schedule, so baptizing (and First Communion, which both of my kids also did) preserves optionality.
