It doesn't bypass the needing of RC or vests to use the newly created accounts as far as I understand.
It bypasses the need of vested sp to hiveonboard's account to get the account creation tokens. A large holder of account creation tokens or vests is giving these for use instead
Yes, you understood it right - I have wrote up my thoughts on this right here:
https://peakd.com/hiveonboard/@roomservice/re-borislavzlatanov-qad2ix