The answer is found in the class where it is defined: app/code/core/Mage/Core/Block/Abstract.php
So it seems that some time after version CE 1.4.0.0-rc1 they decided that htmlEscape should be renamed to escapeHtml.
#File: app/code/core/Mage/Core/Block/Abstract.php
/**
* @deprecated after 1.4.0.0-rc1
* @see self::escapeHtml()
*/
public function htmlEscape($data, $allowedTags = null)
{
return $this->escapeHtml($data, $allowedTags);
}
/**
* Escape html entities
*
* @param mixed $data
* @param array $allowedTags
* @return string
*/
public function escapeHtml($data, $allowedTags = null)
{
return $this->helper('core')->escapeHtml($data, $allowedTags);
}